The changes to off payroll working in the UK have been the second most talked about challenge looming over our workforces in recent years (we won’t mention the first)! While displeasure at the changes was practically unanimous amongst contractors and business leaders, the government have held fast and the changes will take effect as of 6th April 2020.
Alongside those you currently have under contract, it’s highly likely that any new contractors you engage, from now onwards will continue beyond April 6th, and many will want to know their fate, upfront.
IR35 has been billed as a woefully complicated subject. So much so that some may be tempted to stick their head in the sand. This is in part because HMRC have historically struggled to win IR35 cases and have had even less success making the rules on off payroll working clear to ‘everyman’.
The changes coming into force are seeking to address this over complication and make it easier for HMRC to enforce the regulations. They estimate that as few as 10% of contractors that ought to be ‘Inside IR35’ are currently classified as such.
Essentially the change as of April 6th is that responsibility for making IR35 status determinations moves from contractors to clients.
Download the Manager's Guide to IR35All medium or large business need to be preparing for the changes to off pay roll working. Only small businesses are exempt. Under the rules a small business is one that does NOT have two or more of the following characteristics: more than 50 employees, more than £10.2m turnover per annum or a balance sheet greater than £5.1m.
If you are a hiring manager, a member of the HR or TA team, or are contracting at a medium or large business, you have a role to play. Despite the furore over IR35 the changes to off payroll working needn’t turn your world upside down. We can help.
We have put together a guide for hiring managers to help you understand the changes and your role in making status determinations. We are also offering in person consultations with client HR, TA or management teams.
Download your guide below or book an IR35 consultation today.
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