{"id":1817,"date":"2021-03-25T17:57:52","date_gmt":"2021-03-25T17:57:52","guid":{"rendered":"https:\/\/www.aelmarkhams.co.uk\/?p=1817"},"modified":"2021-03-25T17:57:52","modified_gmt":"2021-03-25T17:57:52","slug":"changes-to-off-payroll-working-ir35","status":"publish","type":"post","link":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/","title":{"rendered":"Changes to off-payroll working (IR35) for intermediaries and contractors &#8211; April 2021"},"content":{"rendered":"<p><strong><u>What is the IR35?<\/u><\/strong><\/p>\n<p>IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.<\/p>\n<p>The client is the organisation who is or will be receiving the services of a contractor.<\/p>\n<p><strong><u>How the off-payroll working rules are applied will change on 6 April 2021<\/u><\/strong><\/p>\n<p>Before 6 April 2021, if your worker provides services to a client through you in the:<\/p>\n<ul>\n<li>public sector, the client must decide your employment status<\/li>\n<li>private sector, you must decide your worker\u2019s status<\/li>\n<\/ul>\n<p>From 6 April 2021, all public sector clients and medium or large-sized private sector clients will be responsible for deciding your worker\u2019s employment status. This includes some charities and third sector organisations.<\/p>\n<p>Under the changes from 6 April 2021, responsibility for undertaking employment status assessments will become the responsibility of the entity using the services of the worker, whilst the responsibility for operating PAYE withholding will be that of the entity paying the personal service companies (PSC).<\/p>\n<p>The changes to the off-payroll rules were due to come into effect on 6 April 2020. However, due to the effects of the coronavirus pandemic the changes were delayed until 6 April 2021. The delay is to help businesses and individuals deal with the economic impact of coronavirus.<\/p>\n<p><strong><u>What the changes mean<\/u><\/strong><\/p>\n<p>If your worker provides services to a public sector client, or a medium or large-sized private sector client, they:<\/p>\n<ul>\n<li>should get an <u>employment status determination<\/u> from the client, as well as the reasons behind that determination<\/li>\n<li>will be able to dispute the determination given to them if they disagree with it<\/li>\n<\/ul>\n<p>Different rules apply if your worker:<\/p>\n<ul>\n<li>does not get an employment status determination from the client<\/li>\n<li>provides services to small clients in the private sector<\/li>\n<\/ul>\n<p><strong><u>If your worker does not get an employment status determination<\/u><\/strong><\/p>\n<p>This may be because they are providing services to a small-sized client in the private sector, as the rules are not changing for these clients. Your worker can ask for confirmation of the client\u2019s size and the client will have 45 days to respond.<\/p>\n<p>If the client confirms it is a small-sized organisation, the intermediary will be responsible for determining your worker\u2019s status to see if the off-payroll working rules apply.<\/p>\n<p><strong>Your responsibilities from 6 April 2021<\/strong><\/p>\n<p><strong><u>Income Tax and National Insurance<\/u><\/strong><\/p>\n<p>If your worker provides services to a small private or voluntary sector organisation and the off-payroll working rules apply, the worker\u2019s intermediary will be responsible for deducting Income Tax and National Insurance contributions from your worker\u2019s fees and paying them to HMRC.<\/p>\n<p>The deemed employer will become responsible for deducting Income Tax and employee National Insurance contributions and paying them to HMRC, as well as paying employer National Insurance contributions and Apprenticeship Levy, if applicable, if both:<\/p>\n<ul>\n<li>a public authority, medium-sized or large-sized client makes the status determination<\/li>\n<li>the off-payroll working rules apply<\/li>\n<\/ul>\n<p><strong><u>Paying your worker<\/u><\/strong><\/p>\n<p>Your income for your worker\u2019s services will have already had Income Tax and National Insurance contributions deducted from them if both:<\/p>\n<ul>\n<li>your worker provides services to a public authority or to a medium or large-sized private sector client<\/li>\n<li>the off-payroll working rules apply<\/li>\n<\/ul>\n<p>This means that when you pay the worker, they do not need to pay Income Tax and National Insurance contributions again on those fees.<\/p>\n<p>You can do this by either paying it as:<\/p>\n<ul>\n<li>a salary through your payroll &#8211; but do not deduct Income Tax or National Insurance contributions<\/li>\n<li>dividends \u2013 these do not need to be recorded on your worker\u2019s Self-Assessment<\/li>\n<\/ul>\n<p>As the amounts have already been treated as employment income doing it this way will avoid any double payment of Income Tax or National Insurance contributions.<\/p>\n<p><strong><u>What to do if your worker disagrees with the determination<\/u><\/strong><\/p>\n<p>The client must decide your worker\u2019s employment status and if the off-payroll working rules apply. The client must then tell your worker their determination and the reasons for it.<\/p>\n<p>If your worker disagrees, they\u2019ll need to:<\/p>\n<ul>\n<li>give details of the employment status determination they disagree with<\/li>\n<li>give their reasons for disagreeing<\/li>\n<li>keep copies of any records about disagreements<\/li>\n<\/ul>\n<p>A disagreement can be raised until the last payment is made for the worker\u2019s services.<\/p>\n<p>The client will have 45 days from the date of receiving the worker\u2019s disagreement to respond. During that time the fee-payer should continue to apply the rules in line with the client\u2019s original determination.<\/p>\n<p>If the employment status determination has not changed, the client will have to tell your worker.<\/p>\n<p>If the employment status determination has changed, the client will have to:<\/p>\n<ul>\n<li>give a new status determination to your worker<\/li>\n<li>confirm which date the determination is valid from<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the IR35? IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees. The client is the organisation who is or will be receiving the services of a contractor. How the &#8230; <\/p>\n<div><a href=\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":7,"featured_media":1818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[5],"tags":[14,11,13,12],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams<\/title>\n<meta name=\"description\" content=\"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams\" \/>\n<meta property=\"og:description\" content=\"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\" \/>\n<meta property=\"og:site_name\" content=\"AEL Markhams\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-25T17:57:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2021\/03\/pexels-andrea-piacquadio-3771097-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"ravi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ravi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\",\"url\":\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\",\"name\":\"Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams\",\"isPartOf\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/#website\"},\"datePublished\":\"2021-03-25T17:57:52+00:00\",\"dateModified\":\"2021-03-25T17:57:52+00:00\",\"author\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19\"},\"description\":\"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.\",\"breadcrumb\":{\"@id\":\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/aelmarkhams.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Changes to off-payroll working (IR35) for intermediaries and contractors &#8211; April 2021\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#website\",\"url\":\"https:\/\/aelmarkhams.co.uk\/\",\"name\":\"AEL Markhams\",\"description\":\"Chartered Accountants &amp; Business Advisors\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/aelmarkhams.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19\",\"name\":\"ravi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g\",\"caption\":\"ravi\"},\"url\":\"https:\/\/aelmarkhams.co.uk\/author\/ravi\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams","description":"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/","og_locale":"en_GB","og_type":"article","og_title":"Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams","og_description":"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.","og_url":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/","og_site_name":"AEL Markhams","article_published_time":"2021-03-25T17:57:52+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2021\/03\/pexels-andrea-piacquadio-3771097-scaled.jpg","type":"image\/jpeg"}],"author":"ravi","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ravi","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/","url":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/","name":"Changes to off-payroll working (IR35) for intermediaries and contractors - April 2021 - AEL Markhams","isPartOf":{"@id":"https:\/\/aelmarkhams.co.uk\/#website"},"datePublished":"2021-03-25T17:57:52+00:00","dateModified":"2021-03-25T17:57:52+00:00","author":{"@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19"},"description":"IR35 is a set of rules that make sure workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees.The client is the organisation who is or will be receiving the services of a contractor.","breadcrumb":{"@id":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/aelmarkhams.co.uk\/changes-to-off-payroll-working-ir35\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/aelmarkhams.co.uk\/"},{"@type":"ListItem","position":2,"name":"Changes to off-payroll working (IR35) for intermediaries and contractors &#8211; April 2021"}]},{"@type":"WebSite","@id":"https:\/\/aelmarkhams.co.uk\/#website","url":"https:\/\/aelmarkhams.co.uk\/","name":"AEL Markhams","description":"Chartered Accountants &amp; Business Advisors","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/aelmarkhams.co.uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/62b792ae56f5e0dac348b8fb05651c19","name":"ravi","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/aelmarkhams.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/082a5a26faffc9b19ef40179107d66d0?s=96&d=mm&r=g","caption":"ravi"},"url":"https:\/\/aelmarkhams.co.uk\/author\/ravi\/"}]}},"jetpack_featured_media_url":"https:\/\/aelmarkhams.co.uk\/wp-content\/uploads\/2021\/03\/pexels-andrea-piacquadio-3771097-scaled.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8vhEY-tj","jetpack-related-posts":[{"id":2799,"url":"https:\/\/aelmarkhams.co.uk\/locum-opticians-how-will-ir35-affect-you\/","url_meta":{"origin":1817,"position":0},"title":"Locum Opticians \u2013 How will IR35 affect you?","date":"November 30, 2023","format":false,"excerpt":"What is a contractor? Contractors provide services to a client and bill that client for those services. The client pays the contractor and the Contractor is responsible for their own Tax and NI Contributions. \u00a0 What are the rules on IR35? Legislation was passed in April 2017 which meant that\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2020\/03\/gray-framed-eyeglasses-on-black-surface-2095953-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1257,"url":"https:\/\/aelmarkhams.co.uk\/ir35\/","url_meta":{"origin":1817,"position":1},"title":"IR35","date":"September 17, 2019","format":false,"excerpt":"IR35 is a topic that\u2019s been talked about, and on many of our minds right now, particularly with the revised legislation from April 2020 fast approaching. From this date, it will be an employer\u2019s responsibility to determine an individual\u2019s employment status. But what does this legislation mean, and how will\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"paperwork","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2019\/09\/paperwork.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1668,"url":"https:\/\/aelmarkhams.co.uk\/hmrc-deadline-updates-due-to-covid-19-impact\/","url_meta":{"origin":1817,"position":2},"title":"HMRC Deadline Updates Due to Covid-19 impact","date":"September 11, 2020","format":false,"excerpt":"Tax Detail Original Deadline\u00a0 Extended Deadline How to Apply Self Assessment \/ Personal Tax Second Payment On Account 31\/07\/2020 31\/01\/2021 Automatic, no application required VAT Making Tax Digital - Requirement to digitally link software 01\/04\/2020 01\/04\/2021 Automatic, no application required Defer VAT Payments due between March and June 2020 20\/03\/2020\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"Deadline","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2020\/09\/pexels-jordan-benton-1095601-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1277,"url":"https:\/\/aelmarkhams.co.uk\/ea-and-3k\/","url_meta":{"origin":1817,"position":3},"title":"Zooming In On: How To Keep EA And 3k In Your Business","date":"October 14, 2019","format":false,"excerpt":"2020\u2019s new tax year is bringing with it a whole host of changes. Firstly, IR35 is looming on the horizon and now there are proposed changes to Employment Allowance (EA). This could see small businesses and employers lose up to \u00a33,000\u2026 Here\u2019s why, and our advice on how to keep\u2026","rel":"","context":"In &quot;Articles&quot;","img":{"alt_text":"Photographer","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2019\/10\/photo-banner.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":2009,"url":"https:\/\/aelmarkhams.co.uk\/growth-plan\/","url_meta":{"origin":1817,"position":4},"title":"Mini Budget 2022 Statement \u2013 What You Need To Know","date":"October 5, 2022","format":false,"excerpt":"Chancellor Kwasi Kwarteng presented his 2022 growth plan on Friday 23rd September 2022. The Chancellor's statement was not a Budget, but a 'Growth Plan'. The key announcements are summarised below; Stamp Duty Land Tax No stamp duty to be paid on the first \u00a3250,000 \u2013 up from \u00a3125,000. First-time buyers\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2022\/09\/efwfewfew.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1697,"url":"https:\/\/aelmarkhams.co.uk\/job-support-scheme-jss\/","url_meta":{"origin":1817,"position":5},"title":"Job Support Scheme &#8211; JSS","date":"October 26, 2020","format":false,"excerpt":"Update 4th November 2020: JSS HAS BEEN PUT ON HOLD UNTIL CJRS IS OVER. Update 26th October 2020: Introduction There have been further developments to the Job Support Scheme (JSS) since our last update on the 7th October (below). In a nutshell Employees will still be paid at least 73%\u2026","rel":"","context":"In &quot;AEL News&quot;","img":{"alt_text":"Team","src":"https:\/\/i0.wp.com\/aelmarkhams.co.uk\/wp-content\/uploads\/2020\/10\/pexels-fauxels-3184418-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/1817"}],"collection":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/comments?post=1817"}],"version-history":[{"count":1,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/1817\/revisions"}],"predecessor-version":[{"id":1819,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/posts\/1817\/revisions\/1819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/media\/1818"}],"wp:attachment":[{"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/media?parent=1817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/categories?post=1817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aelmarkhams.co.uk\/wp-json\/wp\/v2\/tags?post=1817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}