Key issues in Taxation - IR35- Get Ready for Change

In our next tax webinar of the series, we will explore the changes to the IR35 rules that are being introduced in April 2021. The IR35 rules require that employment taxes be paid by people who provide services to a business through an intermediary, usually a personal service company (PSC), if that person would otherwise have been regarded as an employee of the engaging business for tax purposes.

Currently, where a private sector business engages a contractor through a PSC, liability to decide whether IR35 applies and to pay any employment taxes rests with the PSC. From April, engaging businesses will be liable for determining whether the IR35 rules apply. Where IR35 applies, the requirement to operate PAYE and pay employers’ National Insurance Contributions will either fall on the engaging business, or an agency in the supply chain. Implementation of the new rules has been delayed a year until April 2021 owing to the Covid-19 pandemic, although the new legislation was introduced in the Finance Act 2020.

During the session we will explore:

• How the rules are changing and how they will work in practice
• The practical implications of the new rules on businesses engaging contractors and their supply chains
• What businesses need to do to prepare and manage their exposure to increased employment tax risks
• The HR element – how to communicate IR35 procedural changes both across the business and to contractors and suppliers.