The IR35 ‘off-payroll’ rules will be extended to the private sector from April 2020 onwards, directly affecting many contractors and self-employed individuals who carry out consulting work under the umbrella of a one-person limited company.

You may be affected by these rules if you are:

  1. a worker who provides their services through their intermediary
  2. a client who receives services from a worker through their intermediary
  3. an agency providing workers’ services through their intermediary

If the rules apply, tax and National Insurance contributions must be deducted from fees and paid to HMRC directly.

From 6 April 2020:

  1. All public sector authorities and medium and large-sized private sector clients will be responsible for deciding if the rules apply.
  2. If a worker provides services to a small client in the private sector, the worker’s intermediary will remain responsible for deciding the worker’s employment status and if the rules apply.

If you require assistance with either of these issues or any other matter, please contact your normal adviser at Frontier.

Frontier Group