To assist with the new IR35 changes to law that come in on 6th April 2021, we have produced an IR35 Update Guidance Document for employers that covers the following issues:
- What is IR35
- Who does IR35 affect
- Inside or Outside IR35
- What will private sector employees be required to do come April
- Checking IR35 employment status
- Status Determination Statement
- Does IR35 apply to workers who live overseas
- Working with agencies
- What you need to do now
You can download this document Free of charge here: IR35 Update Guidance
If your company is struggling to understand their current position, we can help. Contact us here and we can chat through your concerns and provide you with a quote for our services to help you understand and provide you with up-to-date literature and documents to manage this process. We’re here to help you get through and avoid risks of non-compliance or errors with IR35.
Changes to the law
The term IR35 has been bandied around for several years now since it first came in during 2000. Finally it looks as though this April it will become the law for not just public sector bodies but most private sector companies to comply with, so what is it? IR35 is the anti-tax avoidance legislation that was introduced by the Government that targets disguised employment.
Disguised employees are employees who falsely position themselves as limited company contractors and do this to attract less tax, which HMRC see as tax avoidance. It is being widened so that HMRC can more clearly identify whether contractors are working through their limited companies correctly and paying the tax they should be for those services.
It has also been referred to as ‘off payroll working rules’ and is designed to prevent workers from avoiding tax by operating as contractors, when effectively they are employees all but in name.
From April 2021 the responsibility for checking the status transfers from contractors to large and medium companies to do the assessments for IR35 themselves.