IR35 (Off-payroll) Changes Confirmed for April 2021

Contractors & Temporary Staffing Agencies Need to Act Now

Legislation Update

Proposed changes to the so-called "Off-payroll Working in the Private Sector' (or IR35) legislation have been confirmed by Government and will be introduced in April 2021. Parliament voted 317 to 254 in favour of the new guidance yesterday and despite a future third reading in the House of Lords, the rules will become statute at the start of the next financial year.

Who Will be Affected?

The 'Off-payroll Working...' or IR35 rules will affect all contractors who provide their services through a Personal Services Company (PSC) into the private sector.

It will now be the client (hirer or employment organisation) who will determine the status of all future assignments which will, in turn, impact on a contractor's tax & NI contributions. The contractor's employment status will therefore be at the behest of the end-user, not themselves.

As a consequence, many contractors will be treated as employees with their pay calculated as employed PAYE income. The reality is that many contractors will take-home less pay from next April.

Our 4 Step Solution

Jones Howard has created a 4 Point Client Engagement Plan to help temporary recruitment agencies prepare for the introduction of the legislation in April 2021. The Plan includes four distinct stages which agencies need to undertake to ensure their processes and procedures are fully compliant with the new regulations.

Each stage is outlined in the PDF brochure which can be downloaded by clicking the button below, but critically, includes details of how Jones Howard uses the IR35 Shield assessment tool to evaluate the status of any given assignment. Jones Howard offers assignment assessments to clients on a complimentary basis, plus a free and independent consultation service to help agencies fully understand their responsibilities.

Next Steps

Please call 0203 892 9351 or email [email protected]  to arrange an initial conversation with one of our IR35 experts who will be delighted to help your agency formulate a compliant IR35 strategy in advance of the regulations becoming law.

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