Contractors, Get Ready for IR35 in April 2021

The IR35 legislation designed to bring changes to off-payroll working for contractors seems to have been in the pipeline for a while. The scheme, already in place for the public sector, was scheduled to roll out to the private sector in April 2020, but was delayed due to coronavirus.

Private sector off-payroll working rules look set for April 2021 start

Despite the delay, some still remain critical of the new April 2021 launch date, saying that the reform simply isn’t ready. Dave Chaplin, director of The Stop The Off-Payroll Tax Campaign, leads a campaign to prevent the legislation entering statute in its current form. “The government should be supporting businesses right now, not hampering them and, in turn, inflicting harm on the entire UK economy.”

For some however, it seems that the delay might at least allow those affected to prepare. A survey discovered that 71% of UK businesses weren’t even aware of the April 2020 deadline for changes to IR35.

So what are the IR35 changes, who do they affect, and what do they need to do?

To help everyone get to grips with the IR35 legislation, we’ve prepared a written guide to IR35 as well as a help video which explain what it’s all about.

In short, the legislation changes who is responsible for assessing if IR35 applies. The rules are already in force in the public sector, shifting the responsibility for deciding whether or not a self-employed worker is operating under IR35 from the contractor to the employer. It’s this change which is now expected to come into force for the private sector from April 2021.

Browse our business Guides and Videos, or learn more about our online accountancy services for contractors and freelancers.

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About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.