After a 12-month delay and a failed rearguard action by campaigners, IR35 finally came into effect for the private sector at the start of the new financial year. The new off-payroll working rules are intended to ensure that those who work like employees pay broadly the same tax and National Insurance as employees, regardless of the structure they work through.
IR35, which was dreamed up by former chancellor Gordon Brown, is expected to raise £1.2bn a year, according to official estimates. The complex legislation shifts responsibility for employment status determinations from suppliers to end users and applies to all companies above a certain size.
Hudson Contract, the most trusted provider of compliance services in the construction industry, has been working closely with clients over the last 18-24 months to prepare for the changes.
Ian Anfield, managing director, said: “Our customers can feel safe in the knowledge they are protected.
“In the wider market, there is still confusion among some of the tier-one contractors and larger companies about the risk IR35 poses to them through their supply chain. If they have any queries, they should not hesitate to contact Hudson on 0800 054 1127.”
The government paused the introduction of IR35 for the private sector by a year following the coronavirus pandemic. A cross-party group of MPs lent their support to campaign group Stop The Off-Payroll Tax but not enough to prevent its implementation on April 6.