Changes to off-payroll working (IR35) were due to be introduced in 2020, but were delayed by 12 months. The changes to the IR35 rules will now be implemented from 6 April 2021.
In our latest LB Talking Points webinar, our Business Services Director Christine Deacon and Client Relationship Manager Jess Morris, discuss what IR35 is, who it will affect, how it may affect them, plus other points to note on off-payroll working.
Many medium or large-sized non-public sector organisations are taking a precautionary approach, and have determined that all contractors are caught by IR35 and the new regulations, therefore requiring PAYE to be deducted from any future payments.
The reform is designed to ensure individuals working like employees but through their own limited company (‘personal service company’ or ‘PSC’), or other intermediary, pay broadly the same Income Tax and National Insurance contributions (NICs) as individuals who are directly employed. This means that the way many contractors pay tax will change for services provided on or after 6 April 2021.
HMRC will focus on ensuring compliance with the new rules, rather than investigating past arrangements
Further details are available on the GOV.UK website: https://www.gov.uk/topic/business-tax/ir35
You can also find further details in our Blog: https://www.lewisbrownlee.co.uk/off-payroll-working-ir35-from-6-april-2021/
If you have any questions or would like to speak to our team about your situation and how the IR35 rules may affect you, then please get in touch! You can call us on 01243 782 423 or email LetsTalk@LewisBrownlee.co.uk