On the 6th of April 2021 there is set to be a change in regulations for contractors. Specifically, the current IR35 legislation will be updated, and new rules will apply. Contractors and businesses hiring staff on a contract basis must understand the changes that are coming into effect. Learn more about IR35 and how the new rules apply to you with the help of our free, informative brochures below.
What does IR35 mean?
IR35 is a legislation that was introduced in 2000, designed to prevent contractors from committing tax avoidance by operating as 'disguised employees'.
What is the financial impact of IR35?
If the contractor or their PSC could suffer a financial loss, then that would be an indicator that they are working like any other business, not an employee. Self-employed people can make a loss if they quote badly or a job goes wrong.
How does IR35 affect contractors?
The new rules apply to large businesses and mean that the responsibility for determining a contractor’s IR35 status, and ensuring the correct taxes are paid, will switch from the contractor to the end hirer.