Coronavirus delayed the changes for IR35 rules within the private sector from 1 April 2020. Exactly a year later, the changes will come into effect in the next month.
IR35 isn’t a new reform. It was introduced in 2000 to level the playing field for all workers.
The legislation was there to protect workers, but it was open to some interpretation. The decision fell with the contractor – they would decide if they were independent workers and, therefore, if they could get the tax breaks through their Limited Company.
Back in 2017, changes were brought into the public sector which meant that off-payroll workers no longer decided if they were captured by IR35. If they were deemed by the end client to be captured by the legislation, they were to be taxed like an employee, therefore reducing the tax benefits of getting paid through a Limited Company.
With the success of introducing the changes in the public sector, and estimated non-compliance forecast to cost the Treasury around £1.3 billion by 2023/24 if not tackled, it’s now time for the private sector to implement the same changes.
You can download the full guide here –
Make sure you are aware of how the new changes impact you by reading our latest guide today. Our guide gives handy guidance on:
- Who does this affect most?
- Mutuality of obligation
- Other common indicators
- Checking employment status
- Are expenses allowable?
- What are the penalties?
- What are your options?
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