IR35 new rules

From April 2020, the responsibility for setting IR35 status is passing from contractors to the medium and large private sector companies that engage these workers.

Under the new rules, private sector businesses using Relevant Contractors become responsible for identifying and ensuring ‘IR35 compliant’ working practices. In certain circumstances, the private sector business may be responsible for applying PAYE and employer’s NICs to payments to Relevant Contractors.

The outcome of these changes is that businesses fear:

• Losing skilled contractors
• Wrongly placing workers inside/outside the IR35 rules
• Increased costs
• Risk alienating and losing this workforce if they don’t have any answers.

To avoid issues arising in relation to the above, it is important that businesses using relevant contractors should commence reviewing their IR35 arrangements by working with a consultancy business that is IR35 compliant, like GreenKite who offer a new styled IR35 compliant business model.