Topics

IR35

Clio SpringerEditor's message: The Government has introduced reforms to the operation of IR35, bringing the requirements in the private sector in line with those already in the public sector.

IR35 (also known as the "intermediaries legislation") is likely to apply where an individual provides their services to a client via an intermediary such as a personal service company (an arrangement known as "off-payroll working"), but the relationship with the client would otherwise suggest employment status. Previously, if IR35 applied, the intermediary had to operate PAYE and deduct income tax and national insurance contributions on salary paid to the individual.

Since April 2017, where the client receiving the off-payroll workers' services is in the public sector, and 6 April 2021 where the client is in the private or not-for-profit sector (and depending on its size), it has responsibility for operating IR35 and deciding the individual's status and, if it is the fee payer, it must make PAYE deductions.

Clio Springer, senior employment law editor

New and updated

  • Type:
    Employment law manual

    Pay As You Earn

    Updated to reflect that Parliament has approved the introduction of the new health and social care levy, effective from April 2022.

  • Type:
    How to

    How to comply with the IR35 rules on off-payroll working

    Practical guidance on applying the IR35 rules on off-payroll working, including carrying out a status determination, providing a status determination statement (SDS) and implementing a process to respond to any challenges.

  • Type:
    Liveflo

    IR35: Apply the IR35 rules when engaging an individual to provide services

    Use this IR35 workflow to help ensure compliance with the IR35 rules on off-payroll working when engaging an individual to provide services, for example a contractor, freelancer or consultant. The workflow can also be used to review existing contracts.

  • Date:
    6 April 2021
    Type:
    News

    IR35 changes take effect in private sector

    Changes to the off-payroll working rules - known as IR35 - take effect in the private sector on 6 April.

  • Type:
    FAQs

    What is IR35?

  • Date:
    18 March 2021
    Type:
    News

    Four in 10 firms unprepared for IR35

    Nearly four in 10 (38%) mid-sized organisations are not prepared for the introduction of IR35 off-payroll working changes, with just under three weeks to go until they take effect.

  • Date:
    9 March 2021
    Type:
    Commentary and analysis

    April 2021 employment law changes: Five things for HR to do

    While continuing to deal with the impact of coronavirus, HR professionals must ensure that their organisation complies with the usual raft of April employment law changes. In April 2021, these changes include the extension of IR35 reforms to the private sector, a tweak to the national minimum wage age bands, and increases to statutory redundancy pay and statutory maternity pay.

  • Date:
    1 March 2021
    Type:
    Podcasts and webinars

    Webinar: IR35 - What HR needs to know

    Kate Upcraft explains how the IR35 off-payroll reforms will affect your organisation and the practical steps that you need to take to ensure that you remain compliant with the law and manage any additional liabilities.

  • Date:
    16 February 2021
    Type:
    News

    Government waives IR35 penalties for one year

    The Government has published new guidance about how it will support organisations seeking to comply with upcoming off-payroll (IR35) changes.

  • Type:
    Policies and documents

    IR35: Status determination statement via CEST tool

    Updated to flag up HMRC compliance principles, which state that enforcement will initially focus on supporting organisations that have made an honest mistake, rather than issuing them with penalties.

About this topic

HR and legal information and guidance relating to IR35.