On 6th April 2021, the rules around off-payroll working (IR35) will undergo some important changes outlined in our IR35 in the private sector article. These will have a significant impact on recruiters, both at employment agencies or in-house. It’s highly recommended that you seek expert advice if you think this is likely to affect you.
(Note: Due to the Covid-19 emergency, the government postponed the scheduled changes to the rules surrounding IR35 in the private sector. These will now be introduced on 6th April 2021, a year later than originally planned.)
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, a jargon-free IR35 business guide aimed at contractors 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.
Use our Take-Home Pay Calculator to work out your true earnings and see if you could save money with a different company set up.
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