IR35 - Off-Payroll rules in the Private Sector

The implementation of the Off-Payroll rules were due to come into effect on the 6th April 2020 in the Private Sector.  Due to the ongoing spread of COVID-19, this was delayed until April 2021 with the main goal of this delay to help businesses and individuals deal with the economic impact of the pandemic. Please note the delay to the introduction of the new rules is not acancellation and they are still due to be implemented in a years’ time.

From the 6th April 2021, the responsibility for operating the Off-Payroll rules moved from individual contractors and their PSCs to the end-client organisation, at which time they will be responsible for assessing the status of any individual providing services through their PSC and passing this determination to both the individual as well as the agency within the chain. This change only affects medium and large Private Sector organisations as there is currently a “small company” exemption, the definition of which is based on the Companies Act 2006 and detailed below:

You must meet 2 of the following criteria to be defined as a small company and therefore the implementation of the Off-Payroll rules will not apply from the 6th April 2021:

• You have an annual turnover of less than £10.2 million
• You have a balance sheet total of no more than £5.1 million
• You have less than 50 employees

Creative Recruitment are engaging with our clients to ensure we are operating in line with theirbusiness’s approach. Firstly to ensure that our clients are aware of the delay and secondly to confirm their policy.

Please do reach out if you have any questions or if there is anything we can support you with during these unprecedented times.  IR35@creativerecruitment.co.uk or 0207 247 3458.

Link to document: What is IR35? 

Please note, Creative Recruitment are Creative experts not Financial or Tax Specialists for further guidance see the HMRC website here: 
gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients