UK businesses using contractors and freelancers have faced significant cost increases since the introduction of changes to the ‘off payroll working rules’ or IR35, research by Brookson Legal has revealed.
Ensuring all of the contractors you’re working with have their Status Determination Statements (SDSs) prior to the new IR35 rules coming in on April 6th will ensure projects continue to run smoothly.
As a recruiter, it’s important you know the difference between being on a pay-as-you-earn (PAYE) agency payroll and operating via an umbrella company, as this will affect the contractors you work with.
In order to understand the impact IR35 has on recruiters, the key thing to recognise is that the recruitment agency is often referred to as the ‘fee payer’ under the new rules.
While the responsibility for determining a contractor’s IR35 status will sit with the end hirer when new regulations come in on April 6th, the rules will affect all parts of the supply chain.
Chancellor Rishi Sunak today delivered his much-anticipated Budget Statement, setting out how the Government will extend its economic support to reflect the “reopening of the economy”.
The new IR35 legislation may not come into effect until April, but if you’re a hirer you need to start issuing your Status Determination Statements (SDSs) now. There are various reasons why you should get ahead of the rule change:
Ahead of the implementation of the IR35 changes in April 2021, end-hirers should be in the process of undertaking assessments of their contracting workforce and working towards producing Status Determination Statements (“SDS”).
The current pandemic is creating lots of uncertainty for so many and for so many reasons and given this, Brookson Legal would like to provide some clarity on an area of law that has also been impacted by the pandemic…….and that is by answering the question, does IR35 apply to my business?
