Do you need any help with IR35?
The Government changes to off payroll working in the private sector (IR35) are due to come into effect from the 6th April 2021.
The changes to IR35 will mean that all private company organisations (except small company exemptions) will be required to assess the employment status, for tax purposes, of all off payroll workers i.e. contractors who provide services via a personal service company (PSC / Limited Company). An overview of the changes can be found here: https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients
The Government has provided guidance and how to prepare for the changes at: https://www.gov.uk/guidance/prepare-for-changes-to-the-off-payroll-working-rules-ir35
End user clients will be required to review contractor working arrangements and provide a Status Determination Statement (SDS) for each contractor role to confirm whether a contractor is deemed to be operating inside or outside of IR35, a template which can be used is attached.
The Status Determination Statement will confirm either the contractor is:
Outside IR35 – this means they will be able to continue to provide their services to the end client via their existing LTD Company.
Inside IR35 – this means they will not be able to continue to provide their services to the end client via their existing LTD Company and will need to be paid either PAYE through GPW Recruitment or through an umbrella PAYE solution.
Please find links to the following documents to help with the process:
- Off-payroll rules IR35 Status Determination Statement Template
- Terms of Business For The Supply Of Temporary Workers C03A03/21
- Off-payroll (IR35) Rules ‒ Exempt Company Declaration Form
- Brookson Legal Services Brochure – a company that specialises in IR35 Compliance
If you need any further information or you would like GPW to help please email compliance@gpwrecruitment.co.uk