IR35 Off-Payroll Working – changes from 6 April 2021

IR35 changes, originally due to come in last year but delayed because of the Covid-19 pandemic, will take effect from 6 April 2021.  This will alter the rules for engaging individuals through personal service companies and transfer the onus for determining whether the off-payroll working rules apply from the ‘worker’ to client receiving their services.

From 6 April 2021

Any medium or large entity (per the Companies Act definition) will need to consider whether any of the ‘workers’ should be employees.  The onus will be on the client when paying ‘workers’ to assess the status of any ‘worker’ and issue a Status Determination Statement (SDS) to both the ‘worker’ and the intermediary.  If the client is ‘small’, the onus is still on the ‘worker’ and their intermediary to make the decision. 

Medium or large entities 

Will need to review all off-payroll ‘workers’ before 6 April 2021, and assess their status and issue a SDS to them.  If you determine they are employees, any payments from April will need to be made via PAYE. 

If you disagree with a SDS  

If you are a ‘worker’ and you disagree with a SDS given to you by a client (and you have not had your final payment from them under your contract), you can register your disagreement to the SDS with them.  They have 45 days to respond and provide a reason for their decision.   

If you are an ‘engager’ and want to clarify if you fall into the medium/large category, we can help you with this.

If you are a ‘worker’, and would like further information and assistance, we can help.

To discuss the above in more detail, please don’t hesitate to contact:

Graeme Surtees
Director
Email: graeme.surtees@waltonscw.co.uk
Telephone: 01429 234414 

#TeamWaltons

#WeKnowOurStuff