Consultancy agreement—company and company—pro-consultancy
Consultancy agreement—company and company—pro-consultancy

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

  • Consultancy agreement—company and company—pro-consultancy
  • Background
  • 1 Definitions and interpretation
  • 2 Commencement and duration of engagement
  • 3 Provision of services
  • 4 Right to provide a substitute
  • 5 Protection of business interests
  • 6 Fees
  • 7 Expenses
  • 8 Tax and national insurance contributions
  • More...

forthcoming change: From 6 April 2021, 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 for 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 alongside the Budget documentation on 11 March 2020.

The government carried out a review into the implementation of the changes to the off-payroll IR35 regime in January 2020. The response to the review set out a number of amendments, some

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