Posted on July 12, 2019

The draft legislation for the private sector off payroll rules (IR35) was published yesterday. These reforms will take place from April 2020 and bring the private sector inline with the public sector rules.

The reforms will make organisations responsible for determining the IR35 status of any contractor they engage with and to make sure the correct amount of employment taxes are paid.

Any organisation who are affected by this draft legislation have a short window to the 5th of September 19 to respond to the draft legislation.

There are concerns, which the Government does not accept, that industry may use blanket assessments or deem individuals to be employees to manage their risk.

The Government expects the changes to impact 170,000 personal service companies and will be the biggest change to the IR35 legislation since its creation almost 20 years ago.