Update 19.03.20

Government Announces Delay of IR35 reforms until April 2021

On Tuesday 17th March the government announced that the reforms to the off-payroll working rules would be delayed for one year from 6th April 2020 until 6th April 2021. This applies to people contracting their services to large or medium-sized businesses within the private sector.

This decision forms part of additional support for businesses to deal with the economic impact of Covid-19. As a result, the current rules that exist for PSC’s inside and outside the public sector will continue to apply until 6 April 2021.

The government are keen to clarify this is a deferral not a cancellation of the reforms. They remain committed to introducing the policy in April 2021.

If you have any questions contact us at IR35@manpowergroup.co.uk

IR35 Update

IR35 Update: The Final Preparations

The IR35 Timeline

IR35
Launched
IR35 is introduced in April 2000
Public Sector
Implemented
Introduced into the public sector in April 2017
Private Sector
Announced
HMRC announces IR35 in the private sector 2018
Private Sector
Confirmed
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.

Clients
Contractors
Glossary

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.