Major changes to the off-payroll working rules will go ahead in April 2021, it has been confirmed.<\/p>\n
The news comes after MPs voted against an amendment to delay the controversial legislation, known as IR35, for at least two years.<\/p>\n
The rules \u2013 which aim to ensure that \u201ctwo people sitting side by side doing the same work for the same employer are taxed in the same way\u201d – were due to come into force in April 2020, but were delayed as a result of the coronavirus pandemic.<\/p>\n
While primarily targeting contractors working through personal service companies (PSCs), the forthcoming legislation will pass responsibility \u2013 and liability – to the employer to determine how a contractor should pay tax.<\/p>\n
Commenting on the changes, ContractorCalculator CEO Dave Chaplin says firms should have \u201cnothing to fear\u201d with careful planning.<\/p>\n
\u201cMoving forward, the market now needs to prepare and, with careful planning, firms have nothing to fear and can hire freelancers compliantly,\u201d he said.<\/p>\n
\u201cWe have already had a dress rehearsal, and many firms and contractors saw what would happen if they did not prepare properly. We now need to work together to avoid a cliff-edge scenario.\u201d<\/p>\n
Notably, the legislation does not apply to employers who do not meet at least two of the following: a turnover of \u00a310.2 million or more; a balance sheet total of \u00a35.1 million or more; and 50 employees or more.<\/p>\n
For help and advice complying with the new off-payroll working rules, please get in touch with our expert team today. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Major changes to the off-payroll working rules will go ahead in April 2021, it has been confirmed.<\/p>\n","protected":false},"author":2,"featured_media":3618,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,5,46,28,40,25,4,26,7,52],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3616"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3616"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3616\/revisions"}],"predecessor-version":[{"id":3617,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3616\/revisions\/3617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/3618"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}