How to prepare your business for IR35 off-payroll working changes
IR35 is a piece of government legislation created to help distinguish genuinely independent contractors from those who are essentially disguised employees. From April 2021, private sector businesses are responsible for assessing a contractor’s IR35 status, a responsibility that previously sat with the contractor.
Originally due to be enforced in April 2020, there has been plenty of information available and adequate time to prepare, yet a recent survey by IR35 Shield reported that most in-work contractors (52%) have yet to be assessed for IR35 and 86% of contractors have not been provided with vital documentation (a Key Information Document, or KID).
Research from EY TaxChat highlighted that more than a third of self-employed workers are still unaware of the forthcoming changes with a further three in 10 saying they were aware of the changes but did not understand how they would be impacted.
So, what do you need to know?
For further information you can download the free, quick-start guide to IR35 from Sage.