IR35 - Our essential guides and videos explain the IR35 legislation changes & how it will affect your business.
What is IR35?
Changes to the employment tax intermediaries legislation – usually referred to as ‘IR35’ – into the private sector will have ramifications across all sectors The introduction of these new rules will take place in April 2021 having been postponed for a year due to the Covid pandemic.
The use of Personal Service Company (PSC) intermediaries has long been a focus for HMRC, who consider there is a significant ‘tax gap’ as a result of these arrangements.
Existing IR35 rules require anyone providing services through a PSC to consider whether the arrangement with the end client would be an employment if the services were provided direct to the end client, and to operate PAYE where that is the case.
However, from April 2021 these obligations will shift from PSCs to end clients – meaning new admin and tax reporting burdens for many businesses.
It is therefore vital that end clients are ready to implement the new rules from day one to address the potential labour supply, business continuity and compliance challenges that could arise.
Do get in touch if we can help support you on these challenges.
Are you ready for April 2021?
IR35 advice for businesses
Below Employment Tax Partner, Richard Maitland delivers a 2-minute update on everything you need to know about IR35 and how your organisation should prepare for the April deadline.