HMRC has revealed that it will be public sector bodies themselves, not recruitment agencies, which will be responsible for operating IR35 from April 2017 onwards. So, how will this impact contractors?
The Intermediaries Legislation was introduced in 2000 to tackle 'disguised employment', where an individual uses a limited company to carry out professional services, but works in a manner more like an 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope.
Private sector IR35 changes from April 2021
The 'off-payroll' addition to the existing IR35 rules was rolled out across the publc sector in April 2017. The rules will also hit private sector businesses from April 2021. The planned rollout was deferred from April 2020 due to the COVID-19 crisis. These new rules mean that clients (not contractors themselves) will be responsible for determining the employment status of contractors.
Here are some of our most-read articles:
- April 2021 Private sector IR35 reform - what happens now?
- What clients can do to prepare in advance of April 2021.
- What contractors can do to mitigate against the IR35 changes
- IR35 off-payroll changes - our essential FAQs
Get started with our IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- Expert FAQ - Are you 'inside' or 'outside' IR35?
- Try our IR35 tax calculator to find out the financial cost if you are caught.
- Why you should consider taking out IR35 insurance.
Essential IR35 Newsletter
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With the Government’s planned reforms to the way IR35 is operated in the public sector set to go ahead as planned from April 2017, we asked a leading IR35 expert to help explain what the changes mean for contractors in reality.
The standout measure announced during Budget 2016 was placing the burden of enforcing IR35 onto public sector bodies themselves and/or recruiters. Here we look at how this proposed change will affect limited company contractors from April 2017 onwards.
An IR35 expert answers our questions on the ‘Right of Substitution’ – considered to be the most important test in determining employment status. It is also a topic which generates more questions from contractors than almost any other.
Responding to a parliamentary written question, the Treasury has revealed that the direct tax yield from IR35 investigations remains negligible, but is there more to the figures than meets the eye?
HMRC has announced its decision to withdraw the much-criticised IR35 Business Entity Tests (BETs) from April 2015, having established that they have been ‘used very little’, and haven’t fulfilled their intended purpose.
A specialist accountancy firm has reported a surge in demand for IR35 contract reviews by public sector clients following news that dozens of NHS ‘off payroll’ executives could be investigated for failing to provide tax assurances to their departments.
Following publication of HMRC’s new IR35 guide, we asked an industry expert how the guidance compares to the old FAQs, and how specific IR35 issues have been addressed.