IR35 changes due in April 2020, are you ready?
So we’ve all heard about the IR35 legislation introduced in 2000, well there are now some changes being made to it. What does that mean?
The government has confirmed changes to the off-payroll working rules for the private sector. These changes will go-ahead from the 6th of April 2020. Changes in the public sector make engagers responsible for determining whether the IR35 rules apply to the contractors they hire.
In 2000, HMRC introduced the original IR35 procedure. IR35 confronted concerns regarding individuals who supply their services via an intermediary (such as a Ltd Company) instead of as an employee. This then led to some individuals avoiding paying employee income tax and national insurance contributions.
The key change that will go ahead from April 2020 is that the responsibility of defining the IR35 status of the assignment will switch from the Ltd company to the client as the recipient of the services. Businesses (both contractors and those engaging them) have little time to make sure they are ready for the changes. Following up from HMRC’s statements made on the roughly calculated levels of tax through disobedience under the existing legislation it doesn’t come as a shock that extensive lobbying for these progressions to be postponed held little influence.
Once these rules are implemented, individuals who are paid via their Ltd company will need a compliant PAYE payroll option. Let Moolah be that option by contacting us today to see how we can help with all your payroll needs.
Click here to find out more information on IR35 and the changes coming into place on April 2020.
Don’t forget, you can keep up to date with our Latest News Here.