The deadline for IR35 reform in the private sector is 6th April 2021. It is critical that you prepare to remain compliant. Having supported numerous Public Sector clients through the transition when it was introduced in 2017, we are here to support you and help guide you through.
Introduced in 2000, IR35, or off-payroll working legislation, was bough in to ensure all contingent workers were paying the correct amount of tax and NIC.
Previously, a worker was responsible for determining their own IR35 status. However, from the 6th of April 2021, this responsibility will shift to the end user (the client who engages the contingent worker).This means the end user will have to assess their contingent workforce to determine whether the individual is inside or outside IR35 legislation. If a worker is deemed to be inside IR35, they’ll be subject to tax and NIC deductions.
As the end user, you’ll be obliged to share the IR35 determination with the worker and other entities in the supply chain i.e. your recruitment partner. You’ll need to demonstrate you’ve taken “reasonable care” when carrying out the IR35 assessment.
With vast experience from supporting Public Sector customers, We are here to help guide you through these changes. Our team are here to help ensure you have a compliant workforce.
If you are looking for further information on IR35 reform (Off – Payroll working legislation), what your options are and how to navigate your way to building a compliant solution to engage a temporary workforce then please download our guide here. If you would like to talk to one of our experts, please get in touch.
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