Off-payroll working rules: checklist for private sector employers - part 2

Liability for income tax and national insurance contributions (NICs) for contractors will move to medium to large private sector employers from 1 April 2020 under an overhaul of IR35. Andrew Brookes, head of employer solutions at Menzies LLP, explains how to get ready for the rule change

Following a problematic roll-out to public sector hirers in 2017, April 2020 will see responsibility for determining whether IR35 applies shifting to private sector employers.

In order to avoid falling foul of HMRC rules, it is essential that businesses have a clear understanding of how to test IR35 status and the likely consequences for getting this wrong. So, what are they key things business leaders need to be aware of?

1. Medium and large enterprises need to comply with the new rules

From April 2020, the decision about whether the conditions for IR35 are met will shift from contractors and their personal service companies (PSCs) to their private sector hirers.

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