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IR35 changes: is your organisation ready?

18 Mar 2021

As a result of the IR35 changes which are coming into force on 6 April 2021, it is essential that all organisations that use consultants/contractors and all intermediary companies are:

  • speaking to their tax advisers now to ensure they are fully prepared to comply with the IR35 regime by 6 April, including determining whether a consultant/contractor should be deemed an employee; and
  • reviewing any agreements they have in place in relation to consultancy arrangements to ensure they are compliant and offer adequate protection.

The IR35 regime applies where a company engages a consultant/contractor through an intermediary company. It seeks to prevent individual contractors from avoiding paying tax as an employee by operating through the intermediary company in circumstances where they would actually be deemed to be employed.

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If a client company contracts with and pays an individual directly then IR35 may not apply, however the usual considerations of whether the individual is genuinely self-employed will still be relevant and therefore a full review should still be undertaken.

Please contact us here if you would like us to undertake a fixed fee review of your consultancy arrangements.

You can also see all of our Covid updates here.