The changes to IR35 (or off-payroll working) on 6 April 2021 had implications for external HR consultants in terms of the clients they advise and for themselves. Whilst IR35 is a tax issue and your clients should take appropriate tax advice, there are wider employment status implications where HR guidance may be required. This means your clients need to be aware of the status of any consultants they’re engaging, while HR consultants themselves need to understand the impact of changes to off-payroll working rules in how their services may be engaged.
The rules apply to:
- all public sector clients
- medium and large private and voluntary sector clients.
Private sector companies and voluntary sector organisations are considered medium and large-sized if they meet two or more of the following conditions:
- have an annual turnover of more than £10.2 million
- have a balance sheet total of more than £5.1 million (the gross amounts shown as assets before deducing any liabilities)
- have more than 50 employees
If your client does not meet two or more of the conditions, they will be classed as a small-sized client under the off-payroll working rules.
CIPD member content
This content is only available for CIPD members
If you’re already a CIPD member, please sign in to access this content
CIPD HR-inform
Access over 1500 customisable contracts, policies, letters, case law, and other HR tools, with CIPD members enjoying a 50% discount.
CIPD Trust
Tackling barriers to work today whilst creating inclusive workplaces of tomorrow.
Practical guidance to help you identify and implement good atypical working practices
What this practice is, why you should avoid it, and how to approach it if no other options are available
The 'Retained EU law bill', or REUL, changes UK employment law.
Practical advice on how to use this approach as part of your wider conflict management strategy
Practical guidance to help you identify and implement good atypical working practices
What this practice is, why you should avoid it, and how to approach it if no other options are available