IR35 changes coming in April
Changes to IR35 employment tax, which were delayed due to the coronavirus crisis, will come into effect from April 2021, HMRC has confirmed.
Under the new rules, medium and large businesses will be responsible for checking the employment tax status of their workers and determining whether they should be considered as PAYE employees or self-employed.
A letter from HMRC to businesses said, “We recognise that businesses are facing difficult challenges due to COVID-19. HMRC is providing information and support now to ensure businesses have plenty of time to prepare for the changes coming into effect in April 2021. Many contractors and organisations have already begun doing so, and any preparation now will remain valid for April 2021 when the rules change.”
To help businesses prepare for the changes, HMRC will offer online guidance, free employment status for tax checks, webinars, and in-depth, sector-specific workshops.