UK Employment Law Podcast Episode 4: IR35: what employers need to know ahead of the introduction

In this edition of the DLA Piper UK Employment Law podcast series, employment partner Jonathan Exten-Wright spoke with Tax partner David Smith about the upcoming changes to IR35 that are due to come in effect in April 2021.

HMRC introduced IR35 (or the “off-payroll working rules”) in 2000 to tackle so-called “disguised” employment. It is designed to ensure that individuals working like employees but through their own personal service company or other intermediary, pay broadly the same Income Tax and National Insurance contributions as individuals who are directly employed. Whilst that basic premise is not changing what is new and will mean big changes and new challenges for engagers in the private sector, is who bears the responsibility for identifying disguised employment and making the necessary payments to HMRC. From 6 April, that responsibility will pass from the intermediary to the end user of the individual’s services.

Businesses and private sector organisations need to understand what the new rules will mean for them and their labour supply chain, how to carry out a status determination and deal with disputes, how to avoid falling within the new regime and the key areas of risk.

Disclaimer: Any information in this podcast is for general guidance only and is correct as of the date of recording. This podcast is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. For full terms and conditions, please see our website.