Private Sector Changes

No. If you are captured by IR35 there are number of options available to you, including working through your company or going on the payroll of the agency or the end hirer. You need to consider which of the options available best suits your circumstances.

No. There are many different options available to contractors captured by IR35 for their current contract. Depending on your circumstances, closing your limited company down may be a preferable option, but it is not essential.

No. The IR35 changes introduced in April 2021 oblige end hirers to take ‘reasonable care’ when assessing IR35 status. If reasonable care has not been taken when determining a contractors IR35 status, then the end hirer may incur fines with HMRC.

Yes. All contractors are entitled to challenge an end hirers IR35 determination. To do this, they need to undertake an independent review and put forward additional supporting evidence.

An SDS or status determination statement, is a document that summarises an end hirers IR35 assessment for a specific contractor. It determines whether they fall inside or outside IR35, and therefore how they will be paid and taxed.

From April 2021, Private Sector hirers are responsible for assessing a contractor’s IR35 status. This responsibility previously sat with the Contractor.

A Recruitment Agency is responsible for enforcing whatever decision the end hirer makes when determining a contractor’s IR35 status, and making sure their payments are processed correctly.

If you are working as a contractor then your end hirer is responsible for determining your IR35 status and ensuring that you are paid and taxed correctly based on their assessment of your employment status.