Consultancy agreement—company and company—pro-client
Consultancy agreement—company and company—pro-client

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Consultancy agreement—company and company—pro-client
  • Parties
  • Background
  • The Schedule

forthcoming change: From 6 April 2020, the off-payroll IR35 regime, which has applied since 2017 to public sector entities, is extended to private sector entities (other than those which are ‘small’) engaging a worker via an intermediary, such as a personal service company (PSC), and applies to payments made in respect of services provided on or after that date. Broadly, the effect of the off-payroll IR35 regime is, in relevant situations, to shift the responsibility for assessing whether IR35 applies from the PSC to the end client and, in the event IR35 does apply, to shift the obligation to make deductions in respect of income tax and National Insurance contributions (NICs) and to pay the apprenticeship levy (if due) onto the party that is closest in the relevant contractual chain to the PSC (whether that party is the end client which contracts directly with the PSC or another intervening intermediary in more complicated contractual arrangements). For more detail on this extension, see Practice Note: IR35—off-payroll workers. The draft legislation implementing those changes was published on 11 July 2019, with a further draft expected to be published on 18 March as part of Finance Bill 2020.

In January 2020, the government carried out a review into the implementation of the proposed changes to the off-payroll IR35