No, the way IR35 legislation is assessed isn’t changing, it is just the person responsible for making the assessment that is. This change came into effect from April 2021.
IR35 assessments are designed to establish whether a contractor is engaged under a contract of service (an employment contract) or a contract for services (a self-employed contract).
In other words, the assessment seeks to understand if the relationship is genuinely independent or essentially employment in disguise. Historically, this assessment has been the responsibility of the contractor when working for the private sector. But the legislative changes now in place make it the responsibility of the end hirer.
In assessing a contractor’s IR35 status, the end hirer will continue to use the following key criteria:
- Control – Does the engagement between the end hirer and contractor look and feel like employment?
- Personal service – Is the contractor required to carry out the work themselves? Can they send a substitute?
- Mutuality of obligation – Is the end hirer obliged to offer work beyond the agreed project and is the contractor obliged to accept it?