We've put together a series of IR35 videos with our partners at QDOS to help answer the more common IR35 questions we get asked.
Check out the video at the bottom for an in-depth answer or if easier give the team a call on 0203 3974565 and find out more on what the major changes coming in April 2021 are?
If you want an overview here's an excerpt from the video;
The planned implementation of IR35 for April 2020 was delayed and deferred for a year due to the pandemic. However despite lobbying to defer it further, IR35 rules are now enshrined in the finance act of 2020 which received broader sense in July, so it is definitely coming into effect and it's invaluable that clients plan ahead on this basis.
As far as the main changes are concerned they revolve around who has responsibility for determining status. Since Gordon Brown introduced legislation back in the year 2000, individual contractors have been responsible for determining their own employment status under IR35 rules, and paying for the relevant tax and national insurance themselves. From April 2021 however, hiring organisations will now be responsible for determining the status of their contractors to provide a status determination report and also a disagreement and dispute process in the event that a contractor disagrees with the IR35 decision.
Essentially what it means is that the end-user clients now have an extra element of compliance to sort within their business ensuring they demonstrate reasonable care in making those determinations.
Main Points
• IR35 will definitely be introduced this April (2021) so planning ahead and starting now is essential.
• The major changes revolve around who has responsibility for determining contractual status. This means a shift from contractor responsibility to end-user client responsibility.
• This will create an additional level of compliance to consider so planning ahead and assessing whether as the end-user you are willing to accept that responsibility is essential. By using a third-party recruitment agency, such as Consortia, the responsibility will be with them and not necessarily the end-user so could offer a complete solution for contractor management, payroll, IR35 compliance, and full audit trail.
