Small companies ― who is affected by off payroll working (IR35) in the private sector

By Tolley
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The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Small companies ― who is affected by off payroll working (IR35) in the private sector
  • Rules differ by type of legal entity

For the private sector, new rules were due to come into force on 6 April 2020 in relation to the engagement of off payroll workers. However, on 17 March 2020, the Chief Secretary to the Treasury, Stephen Barclay, confirmed that the Government is postponing the reforms to the off payroll working rules (IR35) from April 2020 to 6 April 2021. This will be done through an amendment to the Finance Bill and is in response to the ongoing spread of coronavirus (COVID-19) to help businesses and individuals. Mr Barclay was clear that this is a deferral, not a cancellation, and said that the Government remains committed to the reforms to ensure that people working like employees, but through their own limited company, pay broadly the same tax as individuals who are employed directly (see Hansard ).

ITEPA 2003, ss 60A&ndash

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