Is your business ready for the Private Sector IR35 Reform?
From April 2020, medium to large private sector end clients will be required to make IR35 determinations instead of the Personal Service Companies (“PSC”), under the Off-Payroll Working Rules (“the Rules”). The fee payer (normally an Employment Business or an Intermediary) will carry the IR35 liabilities if a PSC is inside IR35. However, liabilities can transfer to the end client in certain circumstances.
When making an IR35 determination there isn’t a one-size-fits-all approach. The considerations an end client will need to take as to whether an individual fall’s inside or outside will differ across sectors and roles, legal and tax advice will need to be sought.
If you are a Business Owner who engages PSC’s you need to be asking yourself the following questions right now: –
1. Have I identified what part of my workforce will be impacted by the Rules;
2. Will the Rules have an adverse financial impact on my business;
3. Do I fully understand the risks, liabilities and obligations and how I apply the Rules in Practice;
4. Are the commercial terms currently in place fit for purpose considering the Rules;
5. Are the operational processes in place able to deal with the impact of the Rules;
6. Are the payroll and accounting systems able to apply the correct deductions from renumeration if necessary;
7. Does my internal workforce understand the Rules and impact it may have on their role operationally.
The Peach Law Legal Team already have experience of the Off-Payroll Rules as we work with clients suppling to the Public Sector and are already undertaking work for Private Sector clients to ensure they are ready for April 2020. For more information on how Peach Law can help you please contact us on 0161 478 3800 or email [email protected] to register your interest and one of our Lawyers will contact you to arrange a free consultation.