Most private sector contractors with active contracts after 6 April 2021 are likely to be affected. It is advised to consult with your agency and/or end-client contact to find out what they are doing to prepare for the changes.
For example, if you have a 12-month contract beginning 15th May 2020 your end-client will have to make adjustments to your contract before 6th April 2021. If they haven’t sufficiently prepared, there is a chance they could decide – potentially incorrectly – that you are inside IR35 from 6th April. This could result in a sudden decrease in take home pay.
Now you can see where the issues lie, it is important that agencies and end-clients are educated. Contractors who are knowledgeable on IR35 can get involved and help end-clients become aware of the changes. It is also smart to assess your own IR35 status independently to know where you stand in case you are able to appeal an inside IR35 decision.
If you currently have a limited company, do not jump ship just yet – it is still possible to have ‘outside IR35’ contracts after private sector IR35 reform rolls out. In this case the benefits of a limited company would outweigh those of an umbrella company.
Assess your options, speak to an accountant and stay informed on the latest goings-on about off-payroll working in the private sector (IR35).
Speak to us today to discover your personal payroll options in the private sector. We can also discuss with your recruitment agency the right next steps to take.
Are you an agency or end-client engaging contractors in the private sector? Please get in touch with us to understand what you need to have in place before 6th April 2021. The time to prepare is now – don’t wait!