IR35 Reforms to be Implemented in April 2021

Reforms to the off-payroll working rules (IR35) are set to be implemented for the private sector on 6th April 2021 – following the announcement of their postponement in March 2020 due to the impact of the Covid-19 pandemic.

These reforms will bring significant changes to the way contractors in the private sector are taxed in future. This webpage aims to guide you through the fundamental changes that are taking place and address key questions from clients and candidates about the legislation.

If you have any questions about the changes, please reach out to [email protected].

IR35 Update

IR35 Update: The Final Preparations

The IR35 Timeline

IR35 is introduced in April 2000
Public Sector
Introduced into the public sector in April 2017
Private Sector
HMRC announces IR35 in the private sector 2018
Private Sector
IR35 draft legislation released 2019
Private Sector to be Implemented
6th April 2021 IR35 in the private sector

What does this mean for you?

Over the past 12 months we have been working closely with our Clients, Contractors and Suppliers to ensure the implementation of the IR35 reforms have minimal impact on operations and that businesses are well prepared. The recent announcement confirming the deferral allows employers to review their IR35 programme preparations and to plan on how to bring them forward for April 2021.

We will continue to update these pages with more information.

What is IR35?

From 6 April 2021, the responsibility for applying the off-payroll rules will move from the contractor to the ‘end-user’. And, where an individual is ‘inside’ the rules, it will be the responsibility of the ‘fee payer’ to make the appropriate deductions as required by HMRC, such as income tax, employer and employee NIC and the apprenticeship levy.

Click on the tiles below to find out how these changes will affect you, and see a glossary of IR35 terms.


Next Steps

Watch this video sharing top tips to prepare for IR35.

If you have any other questions regarding IR35,
the Manpower team are available to assist you.

Watch the ManpowerGroup IR35 webinars on-demand today

IR35 Update

Watch our first IR35 summary today to better understand:

  • What the new legislation is
  • What needs to be considered
  • How you can mitigate the risks IR35 poses
  • How your business can continue to access the talent needed to drive your business forward.

IR35 Update: The Final Preparations

Watch our second IR35 Update today to gain insights into:

  • Government progress as of February 2020
  • Employment Engagement options including Statement of Work
  • How to manage status determinations
  • Using Umbrella companies.