What do recruiters need to know about IR35? - Image of two recruiters with a contract

On 6th April 2021, the rules around off-payroll working (IR35) underwent some important changes outlined in our IR35 in the private sector article. These changes have had a significant impact on recruiters, both at employment agencies or in-house. It’s highly recommended that you seek expert advice if these changes affect you.

What does ‘IR35’ mean?

IR35 is the name given to the off-payroll working rules set by HMRC. The rules are also referred to as ‘disguised employment’ and affect any worker providing services via a Personal Service Company (PSC). The rules are designed to ensure that workers pay the correct amount of Income Tax and National Insurance Contributions based on their employment status.

What is covered in the IR35 guide for recruiters?

Our free PDF explores the following topics:

  • Who decides if a contract is inside or outside IR35?
  • Private sector rules from April 2021
  • Status Determination Statements (SDS)
  • Will end-clients simply stop engaging with PSCs?
  • What to do if there’s any disagreement about a Status Determination Statement (SDS)
  • Who is the fee-payer?
  • Risk to agencies of being liable for unpaid employment taxes
  • What should agencies be doing now?

IR35 webinar for recruiters

On 12th November 2019, we hosted a webinar all about IR35 and the government’s impending changes.

The webinar was hosted by IR35 expert Crawford Temple from Professional Passport, who explained what the government’s changes mean for recruiters and the contractors and end-clients they work with. We discussed everything you need to do to prepare before implementation (which at the time was still scheduled for 6th April 2020, but was subsequently delayed by 12 months due to the COVID pandemic) and answered a series of questions from our audience.

We also discussed our IR35 Navigator tool which helps recruiters, end-clients or contractors check the IR35 status of an assignment, and explained how this could help your agency win new clients.

The webinar is available in its entirety below:

Our “What is IR35?” hub is the place to head for all things IR35 – we have an independent IR35 Navigator tool to help contractors, recruiters and end-clients understand their IR35 risk, as well as articles explaining everything you need to know about IR35.

Key Information Documents

Unfortunately, IR35 isn’t the only new piece of legislative change that recruiters need to keep their eyes on. Since the 6th April 2020, agency workers have needed to be provided with a Key Information Document before they agree on terms with a business or agency.

You can read all about Key Information Documents (or KIDs) in our Knowledge article, “What is a Key Information Document and why do agency workers need one?“.

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
team photo off all crunch team
Share this post
Jake Smith
Content Strategy Manager
Updated on
April 19, 2021

Knowledge Hubs

Speak to the experts

Our UK based team of experts are ready to help you find the best accounting package for you and your business.

icon of a green tick
Certified Accountants
icon of a green tick
HMRC Approved
Senior Sales Advisor
Book a meeting
Crunch Pro Tip
Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.

Crunch Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Crunch Pro Tip
Did you know - you have access to a Chartered Certified accountant for free on our paid subscriptions?

Book a call with our one accountants and get your questions answered. Just £24.50 +VAT for Crunch Free users.

Crunch Pro Tip
Did you know - Your Self Assessment has to be filed by the 31st of January deadline?

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £140 +VAT.

Crunch Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.