IR35 reforms to be delayed for a year due to coronavirus
Chief Secretary to the Treasury, Steve Barclay, has announced that the IR35 tax reforms will be pushed back by one year, less than a week after the controversial measures were confirmed in the Budget.
Find out more in our blog post: https://www.taitwalker.co.uk/insight/knowledge/ir35-reforms-delayed-coronavirus/
From 6 April 2021, for medium and large-sized businesses in the private and third sectors, the responsibility for deciding whether the IR35 rules apply will become the responsibility of the organisation that is the end user of the worker’s service (the “end-client”).
These businesses will need to review all of their current business practices as soon as possible (prior to 6 April 2021), including the on-boarding process.
As with all new changes in legislation, early preparation is key and we advise that you act now.
Our brochure highlights the key information you need to know and oulines what you need to do to prepare for the changes.
What do businesses need to do to prepare?
- End-clients with off-payroll workers need to consider if the small business exemption applies
- Identify all off-payroll workers
- Use HMRC’s online ‘Check Employment Status for Tax’ tool
- Review the CEST tool result using MHA Tait Walker’s IR35 tool
- Review the contract and working practices
- Issue Status Determination Statements
- Set up a status disagreement process
- Ensure payroll is set up to process payments made after 6 April 2020
IR35 blog series
Our IR35 blog series outline what the IR35 changes mean for businesses.