What are the IR35 legislative changes that happened in April 2021?

New off-payroll working rules were introduced in the public sector which transferred the responsibility to account for PAYE/NIC from the individual to the engager (or fee payer if someone else paid the contractor). The public sector rules were extended to large and medium sized businesses in the private sector from April 2021.

IR35 in simple terms means that if a worker is a disguised employee he/she should be subjected to the same tax and national insurance deductions as other regular employees. IR35 does not therefore affect those paying employed levels of tax (for example, umbrella employees) but does affect those running their own personal service companies (PSCs) and declaring dividends from company profit.

What about the mini-budget announcement in September 2022?

The most significant announcement for contractors in Chancellor Kwasi Kwarteng’s mini-budget announcement in September 2022 was that the IR35 off-payroll reforms of 2017 & 2021 were to be repealed from 6th April 2023. However, Chancellor Jeremy Hunt retracted this in a statement as the new Chancellor in October 2022. We believe it is important that the Government provide a clear robust roadmap and certainty to the contracting sector. As soon as we know more, we will provide you with updates.

How ADVANCE can support contractors

ADVANCE offer a suite of market-leading solutions for contractors across all sectors. If you're unable to work through a PSC/Limited Company, don't worry, we can help you find the best solution.

How ADVANCE can help agencies and their clients

We are offering technical and tailored advice, workshops, client visits & support to ensure you and your clients understand the impact of the legislation changes that happened in April 2021. Working with ADVANCE puts you in safe hands with our range of services and market leading solutions.

ADVANCE's IR35 status tool provides you and your clients with software which is educational and provides status determinations, with a score for each section.

• We have worked with our advisors EY to design an IR35 status tool which draws on EY’s detailed advice and is based on complex case law.
• Using algorithms, ADVANCE's tool helps you determine whether a role is ‘in’ or 'outside' of IR35.
• The tool has weighted the answers by breaking down IR35 case law
• Our software does the rest
• Provides you with helpful tips throughout which helps on selective elements of IR35
• Educational throughout and shows how to minimise risk
• Analytical & factual
• Dashboards and reporting so you can visualise your exposure
• Is extremely flexible and can be used by agencies & clients and for individual roles

Contact our team of experts to discuss how we can support you on 01244 564 564

Understanding the basics of IR35 - the easy way!

These bitesize podcasts provide a brief overview of all you need to know to refresh on the basics of IR35.