Future proof your consultant workforce

What is IR35?

On 6th April 2017, major reforms to off-payroll working in the public sector came into force. Prior to this date, contractors using PSCs (Personal Service Companies) were in charge of determining their own employment status, and therefore abiding by the appropriate tax laws.

The 2017 reforms were that public sector end-clients became obliged to assess the status of the role. They then had to notify this determination to the entity in the supply chain (the Fee Payer) that was responsible for paying the Personal Service Company (PSC).

In the Autumn Budget of 2017, the government announced that this would be extended to large and medium-sized organisations in the private sector.

Changes to the off-payroll working rules (IR35) due in April 2020 will now be postponed to 6th April 2021

On 17th March 2020, the UK Government announced that the IR35 off-payroll working reforms, will now be delayed for a period of 12 months until April 2021 amids the coronavirus pandemic. General Counsel, Gavin Tagg sheds light into the postponed IR35 reform in his latest blog.

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Despite 90% of employers being aware of IR35 reforms, only two thirds understood if a contractor was in or out of scope, something that has huge legal and financial implications for both contractors and companies.

It’s important to take this time to learn about the lessons and benefits from the public sector and remember that undertaking activity to transition from old to new will need to begin well in advance.

Key to success was working with the team to identify risks, being prepared, ensuring the organisation has gripped the issue at the top level and changes are well communicated to hiring managers within the organisation, who are then able to deal with the changes correctly and consistently..

Contact Us

We work with large, complex organisations to help them better understand their workforce profile and risks ahead of IR35. To find out how we can support you and your business, please contact our team at engage.adeccogroup.co.uk/ir35.