After implementing the new IR35 legislation to the public sector back in April 2017, it will now be extended across the Private Sector, starting from April 2021. Medium and large businesses within the private sector and defined by the Companies Act 2006, will be expected to implement and abide by these new rules from this date onwards.
Small businesses within the private sector will continue to follow the existing rules and will therefore be excluded
and unaffected by the new changes.
To qualify as a small business, a company must meet at least two of these three qualifying requirements:
If you are providing your services through an Umbrella Company, then the off-payroll rules will not apply to you, The Umbrella company acts as your employer and are responsible for your deductions. You will already be paying the correct Tax and NI at source.
Contractor Solutions IR35
If you are looking for further information on IR35 reform (Off – Payroll working legislation), what your options are then please download our IR35 Questions Answered factsheet. If you would like to talk to one of our experts please get in touch or call us on 01785 339 000.