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Changes to off-payroll working in the private sector

07/03/2019

Locations

United Kingdom

With effect from April 2020, the requirement to ensure working practises are compliant with 'IR35', also known as the 'off-payroll working rules', is shifting to the end user.

With effect from April 2020, the requirement to ensure working practises are compliant with 'IR35', also known as the 'off-payroll working rules', is shifting to the end user. This change will affect private sector businesses who use consultants / contractors where those consultants / contractors operate through intermediaries, such as personal service companies ("Relevant Contractors"). This change follows an identical change (already implemented with effect from April 2017) for organisations in the public sector that use Relevant Contractors.

Under the new rules, private sector businesses that use Relevant Contractors will also be responsible for identifying and ensuring 'IR35 compliant' working practices. In certain circumstances, the private sector business may also be responsible for applying PAYE and employer's NICs to payments to Relevant Contractors.

Businesses engaging large numbers of consultants / contractors should start reviewing their working practises now to avoid unexpected disputes with HMRC and sizeable tax demands for uncollected PAYE.

To read more, please click here.

Fieldfisher will be hosting an IR35 Round Table event which will discuss what steps businesses can and should be taking to prepare for this legislative change and how they can manage this transition smoothly and effectively.

The event is taking place on 2 April 2019 (3:30pm until 5:30pm) at Fieldfisher's London office.

To register for free, please click here.

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Areas of Expertise

Employment