Last year the government announced a change to off-payroll working for contractors and intermediaries, which is scheduled to take place in April 2021.
For a business this means if your worker provides services to the public sector, medium and large private sectors the client determines their employment status, this also includes some charities and third sector organisations. Should your worker fall under the new rules their fees will be subject to tax and National Insurance Contributions.
If your worker has not been given a status from their client, this may be because they are a small client within the private sector, therefore, the IR35 changes do not affect them. Employees can ask for confirmation from their client who have up to 45 days to respond, if the client confirms they are a small business it is up to you to determine the workers status to see if the off-payroll rules apply.
For further information on off-payroll working and small businesses please visit: https://www.gov.uk/guidance/ir35-what-to-do-if-it-applies
Key points to highlight:
The deemed employer will become responsible for deducting tax and National Insurance contributions and paying them to HMRC if both:
To find out more information and check if the changes will affect your business please visit: https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-intermediaries#what-the-changes-mean
If you need any help or advice on the changes, please contact one of our team today on 01670 897407.