Following the announcement on 17th March 2020 that IR35 has been delayed until April 2021 due to Coronavirus, Pure have put our plans on hold alongside this postponement.
If you have any questions please contact us on firstname.lastname@example.org or via 01223 209884.
Our intended approach for 2021
At Pure we are working together with our clients and candidates to continue to provide temporary recruitment services whilst complying with the new 2020 IR35 requirements.
IR35 are rules which apply where an individual works through an intermediary, such as a Personal Services Company (PSC) and they provide their services to an end client.
The off-payroll rules which have applied in the public sector since April 2017 are due to be extended to the private sector from 6 April 2020.
The rules are intended to ensure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same tax and national insurance contributions as employees.
It is important to note that the IR35 tests for whether an engagement is inside or outside IR35 remain the same. It is the responsibilities that are changing.
Under the current rules it is the intermediaries responsibility for assessing IR35 status and for making tax and national insurance deductions.
From 6 April 2020 the responsibility for assessing IR35 status will move from the intermediary to the end client and the responsibility for making tax and national insurance deductions will move from the intermediary to the fee-payer.
If we are providing temporary recruitment services to our client, then Pure will be the fee-payer however, if the client is engaging directly with the intermediary then they will be the fee-payer and have primary liability.
There will be an exemption from the change in IR35 rules for small companies. Public authorities, medium and large organisations will be in scope of the rules.
If our clients are affected then they will need to understand the IR35 rules and use reasonable care to reach an accurate IR35 status decision called a Status Determination Statement (SDS).
HMRC have provided an online tool to assist with this process, Check Employment Status for Tax (CEST) which can be found here.
We are currently working on new contractual terms which will be in place ahead of the planned changes from 6 April 2020 for temporary assignments with small companies exemption and for any IR35 assessments where we agree an outside IR35 status.
To help our workers with preparing for this change we have created an IR35 Guide for Workers.
To help our clients with preparing for this change we have created an IR35 Guide for Clients.
If you require any further support or wish to talk to one of our team surrounding your specific circumstances please contact us on email@example.com or call 01223 209884.