You will be aweare that the roll out of IR35 into the private sector was deferred by 1 year due to COVID-19. This is now just a few weeks away so if you have not started to evaluate working relationships in your busines (where people are off payroll) don't leave it too long!
HR should identify any self-employed consultants that invoice for their time through a limited company (personal service company) or Intermediary Company. If you have contractors in your business and you fall into the catagory of mediam or large-sized private sector organisation then on obligation is on you to ascertain if the contractor falls within the rules of IR35. There is a government online tool to ascertain if there will be an obligation on the company to deduct income tax and national insurance contributions at source. This can be found here: https://www.gov.uk/guidance/check-employment-status-for-tax
Information about IR35, including HMRC videos, are available here https://www.gov.uk/guidance/understanding-off-payroll-working-ir35
If a worker provides services to a small client in the private sector, the worker’s intermediary will remain responsible for deciding the worker’s employment status and if the rules apply.
An intermediary will usually be the worker’s own personal service company, but could also be any of the following:
- a partnership
- a personal service company
- an individual