This is an important change for some employers.
From 6 April 2021, all public sector clients and medium or large-sized private sector clients will be responsible for deciding your worker’s employment status. This includes some charities and third sector organisations.
If the off-payroll working rules apply, your worker’s fees will be subject to tax and National Insurance contributions.
The IR35 changes for the private sector Reforms to the intermediaries’ legislation (IR35) in the public sector were due to be extended to medium and large private sector employers from 6 April 2020 but this was delayed until 6 April 2021.
This was 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.
To briefly summarise the changes – the responsibility for determining whether IR35 applies to independent contractors will shift to the organisation engaging the individual.
It might be prudent for employers to review their contracts and pay arrangements for contractors to determine how the new rules will affect them.
The government guide to April 2021 changes to off-payroll working for intermediaries and contractors can currently be found here
https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-intermediaries
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