IR35 in the private sector – now referred to as off-payroll working in the private sector – is changing from April 2020.
From 6 April 2020, private sector contractors working through their own PSC (Personal Service Company – aka limited company) will no longer be able to determine their own IR35 status.
The current rules are such that PSC contractors are able to assess their own working circumstances. Currently they can determine whether the IR35 rules apply (inside IR35) or do not apply (outside IR35) to their contract.
The changed rules will mean that engagers – i.e. end-clients – will be responsible for assessing the IR35 status of their contractors in the private sector. However in the 2018 Autumn Budget announcement, it was outlined that ‘small’ organisations will not be subject to this requirement. Therefore PSC contractors working for small end-clients will still be able to assess their own status.