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.