IR35 Extension - Will it affect your business?

According to a recent survey, a third of firms who regularly use contractors are not aware of the upcoming changes to legislation (known as IR35) that deals with the way they should be paid. It is already in place for public sector organisations but is being extended to private firms and charities in April 2020.

This is according to the feedback of 31,500 respondents to the survey undertaken by Hays. However, the result of the survey may not be surprising as it only applies to medium sized companies and above. So if you are a small business or charity, don't panic - this will not apply to you!

The rules will apply to all public sector clients and private sector companies that meet 2 or more of the following conditions:

1. You have an annual turnover of more than £10.2 million
2. You have a balance sheet total of more than £5.1 million
3. You have more than 50 employees

If it is likely to affect you, you will need to put in checks to ensure that you have categorised the contractors correctly. See https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients#conditions for more information.
Posted on 05 Nov 2019
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