IR35 has been around since April 2000 and exists to allow HMRC to challenge the employment status of those workers who provide their services via an intermediary, such as a limited company but who would be an employee if the intermediary was not used.

HMRC refers to such workers as “deemed” or “disguised” employees and, if successful in applying IR35, will seek to recover any lost income tax or national insurance contributions (including Employers NIC).

When challenging the status of contractors and intermediaries, HMRC will attempt to ignore established contracts and look at what they consider to be the true nature of the working relationship.

But change is afoot:

From 6th April 2021, the new Off-Payroll Rules come into force and the onus of responsibility for determining and reporting IR35 status will move from the intermediary themselves to the employing company.

Only small companies (as defined under the Companies Act 2006) will be exempt from this responsibility.

Medium and large companies need to act now to assess their potential liability & here is how we can help:

Our specialists have detailed knowledge of the proposed rules and practical experience of implementing the changes. We have a multi-disciplinary team of experts who can provide advice and help you prepare for all aspects of the changes, including:
• designing new processes and controls, such as payroll, human resources, finance, data management and IT;
• workshops and bespoke training;
• developing a tailored approach to status determinations and employment status for your business; and
• changes to your budgeting, compliance, contracts and key stakeholder communications.

Speak to us to help you navigate through this complex issue.