Medium and large businesses will now need to take significant care when taking on contractors and to re-evaluate all existing contracts that necessitate payments to a contractor who is selling their services via a personal service company (PSC) or similar. In other words, IR35 ceases to be a matter just for contractors as is typical in the private sector.

Below, I share five reminders for those handling accounting and payroll within an organisation to aid understanding among the wider business for the legislation change that came into force on 6 April 2021:

1.           Be clear on what IR35 entails