The IR35 legislation was introduced in 2000, intended to tackle the perceived tax abuse by a worker who would be treated as an employee of their client, were it not for their personal service company (PSC) acting as an intermediary.
The responsibility of determining IR35 status and paying the relevant taxes has always been that of the PSC contractor themselves until April 2017, when those contracted to the public sector were removed of their responsibility – which was passed to the hiring public sector body.
As of April 2021, these same rules have been extended to the private sector. Medium and large businesses will need to determine the IR35 status of their contracted workforce, and pass this information down the supply chain to the fee-payer who will be responsible for deducting the relevant taxes where necessary.
Read our customer case studies to find out how other businesses have successfully managed reform.