{"id":6901,"date":"2020-03-26T12:25:05","date_gmt":"2020-03-26T12:25:05","guid":{"rendered":"https:\/\/www.riaabarkergillette.com\/uk\/?p=6901"},"modified":"2024-11-19T18:27:37","modified_gmt":"2024-11-19T18:27:37","slug":"covid-19-ir35-delayed-to-6-april-2021","status":"publish","type":"post","link":"https:\/\/www.riaabarkergillette.com\/uk\/covid-19-ir35-delayed-to-6-april-2021\/","title":{"rendered":"COVID-19: IR35 delayed to 6 April 2021"},"content":{"rendered":"\n

The Government have stressed that this is not a cancellation of the policy but a deferral only. Whilst this decision removes the immediate pressure, employers and individuals should continue to prepare for the IR35 changes, which will come into force on 6 April 2021.<\/p>\n\n\n\n

What are the IR35 \u2013 off-payroll working rules?<\/h4>\n\n\n\n

IR35 is a piece of tax legislation that permits HMRC to collect additional payments where a contractor is an employee in all but name.<\/p>\n\n\n\n

It applies where a worker provides services through their limited company or another type of intermediary to the client. An intermediary is usually the worker\u2019s own company, but it could also be a partnership, a personal service company or an individual. Provision is made that workers, who would have been an employee if the services were provided directly to the client, pay the same tax and National Insurance Contributions (NIC<\/a>) as employees.<\/p>\n\n\n\n

What are the IR35 reforms?<\/h4>\n\n\n\n

Currently, individual contractors in the private sector can determine their employment status for tax purposes and, as such, decide whether IR35 applies to them.<\/p>\n\n\n\n

Following the IR35 reforms, if your business is a medium or large size business, this contractor self-assessment will cease and will instead be the responsibility of the client or hirer (the \u201cend-user<\/strong>\u201d) to determine whether IR35 applies.<\/p>\n\n\n\n

Clearly, the Government is concerned with non-compliance under the existing self-assessment regime, but these reforms will significantly impact medium and large-size organisations.<\/p>\n\n\n\n

The IR35 definition of medium and large-sized organisations is based on the definition found in the Companies Act 2006<\/a>, whereby two or more of the following criteria must be present:<\/p>\n\n\n\n