Rules-affecting-the-private-sector-big
Lenah Oduor

Lenah Oduor

Lenah is a CIPFA qualified accountant with over 18 years’ experience in both business and accounting practice.

Off-payroll working (IR35) rules affecting the private sector

Tax changes for new tax year 2020/202: Off-payroll working

From 6th April 2020, contractors working through a Personal Service Company, or Recruitment Agency providing services to Medium and Large businesses will be at risk of being deemed to work as an employee.  

The end client is responsible for determining whether a contract is inside or outside of IR35. This change in legislation does not affect small businesses. According to Companies Act 2006 a small business is defined as one which meets two or more of the following criteria:  

  • Annual turnover is no more than £10.2 million 
  • Balance sheet total is no more than £5.1 million 
  • No more than 50 employees 

The government has produced two fact sheets 1) to explain why the changes have been introduced and 2) for Contractors to explain what to do if you are affected. 

At gHawk Accounting, we partner with tax experts and can advice on any complex tax changes. We can review your existing contract and advice whether it is caught by IR35 and what you can do to protect yourself. If this affects you, please contact us urgently

The information contained in this website is for general information purposes only. The information is provided by GHawk Accounting and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is, therefore, strictly at your own risk and we accept no liability for action taken upon recommendations made in on this website.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More on the blog