IR35 update 18/03/2020;
The Government has announced a last minute delay to the changes of the IR35 legislation following the recent outbreak of Covid-19. These changes are now to be reintroduced in April 2021 which will be a welcome delay to many clients and contractors. Although, there has been a delay to the implementation of the off-payroll tax to the private sector it WILL happen in 2021. Pioneer Search are still on hand to offer any advice around what to do now as a contractor or as a client so do get in touch.
What is IR35?
IR35 is NOT new, it is a legislation that has been around since the year 2000! Up until now a contractor could decide their own status and whether to opt inside or outside of IR35. In April 2021 the legislation will change where the ‘end client’ now becomes responsible for determining the status of the contractor, leading to an “on or off payroll” outcome being passed down to contractor and agency workers.
Who does IR35 impact?
IR35 was designed to close a tax loophole where the workers could operate via a Limited company and pay less tax. The new updated legislation will now ensure that “deemed employees” are correctly identified and provided with a status determination.
What is Pioneer Search offering?
Pioneer Search is committed to providing clear, accurate and up-to-date information on the off payroll / IR35 reforms which are coming into force within the private sector. With often contradictory information being published across the web, we are providing our clients and contractors with clear information available in our dedicated Contractor and Client Hubs below;