Major Changes to IR35 in 2021
In March 2019, the Government announced its intention to tighten the rules surrounding the employment status and the subsequent tax class of contractors and therefore, further changes to Inland Revenue 35 (IR35) will be coming into force.
From 6 April 2021, determining the correct IR35 status will switch from the Agency Contractor to you, the end client
These changes were due to take place in April 2020 however, they were delayed for 1 year so they will now be coming into force from April 2021.
Will it happen this time around?
Almost certainly a yes! The new IR35 rules were published in the Governments finance bill and given Royal ascent in July 2020 so it is now law. Also given the amount of money the UK government has spent due to COVID-19, it is inevitable that they will need to recover as much as possible and the general opinion is that IR35 is going to help to rebalance the books.
These changes will apply to most organisations that utilise contractors and the responsibility for assessing a worker’s employment status will pass to the end user. The changing responsibilities may affect companies’ liabilities so it is important that businesses undertake a number of checks to ensure that they are prepared for their future obligations.
The aim of this communication is to provide our customers with information so that we may prepare for what will be a significant change within the industry.
OVER THE COMING WEEKS, WE ARE HOLDING A SERIES OF IR35 SESSIONS VIA MICROSOFT TEAMS SO PLEASE CONTACT US TO FIND OUT MORE OR IF YOU WOULD LIKE TO ATTEND.