Are you IR35 ready?
The changes to the off-payroll rules were due to come into effect on 6 April 2020. This has now been delayed until April 2021 because of the spread of the coronavirus (COVID-19) pandemic. The delay is to help businesses and individuals deal with the economic impact of COVID-19.
The delay to the introduction of the changes is not a cancellation.
You may have read about changes to the IR35 legislation, which will come into effect in April 2021. This affects anyone who is engaged as Ltd Co (personal service company) or through an Umbrella company.
It is a matter for your own personal service company to consider whether PAYE needs to be applied to any money paid to you whilst working on assignments. With effect from 6th April 2021, the onus will pass to the end user client who will have to decide that issue. If it is determined that you fall inside IR35 for the particular assignment, then it will not be possible to pay gross fees to your personal service company and, instead, PAYE will have to be applied.
At Wilcock Consulting, we will keep you updated as the legislation progresses towards its final form, ahead of April 20201. We are actively working with our clients now to talk to them about all of the ongoing assignments that we have across our contractor population to consider the clients’ position in relation to whether those assignments fall inside or outside IR35.
If you have not already done so, we would recommend that you consult with your own accountant to discuss the forthcoming legislation and how that may apply to you and your current business model. Wilcock Consultants are not able to provide you with any advice on those matters, but your accountant should be able to do so.
You may also wish to look at HMRC’s ‘Check Employment Status’ tool (CEST) which was updated on 28/01/2020 and can be accessed through the following link:
We are working to make sure that, for all of our existing contractors, we can establish a clear and, hopefully, agreed position with everybody in relation to the status of current assignments, with a view to making any transition through to 6th April 2021 straightforward and seamless for all concerned.
If you have any queries please contact Charlotte Bertenshaw, Operations Manager at firstname.lastname@example.org.