IR35 Information
IR35 – Intermediaries Legislation was introduced in the early ’00s and was designed to remove the tax advantage of providing services via a limited company.
From 6th April 2021 the:
- Rules for engaging individuals through personal service companies or other intermediaries changed, responsibility for working our if the off-payroll working rules
- (IR35) apply moved to the organisation receiving an individual’s service
You should make sure you understand:
- The impact of the changes on your organisation
- Actions you may need to take
These are the changes to be made aware of; however, the responsibility for assessing IR35 will change from individual limited companies to the recruitment or hiring organisations that pay the limited companies.
This change has already been made within the public sector.
Businesses classed as ‘medium’ or ‘large’ are within the new ‘IR35’ guidelines.
Small businesses are exempt from new responsibilities as long as they fall under:
- Turnover less than £10.2 million
- 50 employees or less