6 April 2021 will see the implementation of off-payroll legislation (also known as IR35) in the private and voluntary sectors. From 6 April, organisations will have more responsibility for determining whether IR35 applies to contractors and self-employed individuals. If not, organisations will be responsible for deducting tax and national insurance contributions (NICs) from contractors’ fees paid through intermediaries.

The organisations covered by this extension of IR35 are those: 

  • with an annual turnover of over £10.2 million 
  • with a balance sheet worth £5.1 million or more 
  • employing 50 or more people.  

This added layer of responsibility brings the expectations for private and voluntary sector businesses in line with public sector organisations – which became subject to a similar rule in 2017. 

There are repercussions of this extension for both in-house and consultant HR practitioners, which you can explore via the options below. 

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IR35: It's back

Charles Cotton’s article considers the implications of IR35, including the steps employers can take to prepare for the changes and how HR can help enforce it.

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