Rachel Pallet

Dec 04 2019

IMPORTANT UPDATE: Did you know IR35 Legislation is Changing in April?

Shaking Hands, Handshake, Hands, Welcome, Agreement

What is Changing : The Government is extending the off-payroll rules, which have applied in the public sector since April 2017, into the private sector. The new rules will apply to work done by contractors working through intermediaries such as personal service companies. Importantly, the tests for IR35 status are not changing but the responsibilities for making the IR35 status decision and related deductions are.

When is the change: The new rules will apply to all payments made to personal service companies on or after 6 April 2020.

What’s the difference? From 6 April 2020, the client, and not the contractor, will be responsible for assessing IR35 status. For inside IR35 assignments, the agency or umbrella company will have to make tax and national insurance deductions before paying the personal service company.

At Flexistaff we are prepared for this change and will be in contact with our clients to help with any questions or queries. If you have any questions, or want to discuss how Flexistaff can support your job search or organisation, contact us on 01582 696959 or office@flexistaffuk.com.