As you may have read this week, the government has announced that in order to minimise the economic impact of COVID – 19 the proposed IR35 (off-payroll rules) changes will be delayed until 6th April 2021.
How does this affect you?
Following the announcement Clients will not be required to complete Status Determination Statements at this stage for individual contractors. The decision as to whether you are Inside or Outside of IR35 will remain with you and your PSC.
At this stage it is important to note that we believe this is merely a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals. IR35 assessments are likely to recommence in late 2020/early 2021, so we encourage you to continue to adjust your working practices so that you operate as a genuinely independent contractor and Outside of the IR35 off-payroll rules where applicable. With this delay you now have more time, to ensure that you are engaged in a manner that you are not part and parcel of the client’s organisation.
If you have already been classed as “Inside”
If you have already been through the process and it indicated that you were “Inside” the payroll rules you will now need to consider your next steps with regards to tax payments. We advise that you complete your own assessment using the CEST tool on the government website and if you consider yourself to actually be acting “Outside” of the rules, please send us a copy of the CEST result to our IR35 team at IR35@nesgt.com.
Continuing to draw on our extensive, 40 Years plus experience in the UK contracting market NES will work closely with clients and contractors through this difficult period, to ensure that you are able to carry on with your assignments and projects.
Additionally we will help you prepare for the eventual changes in April 2021 when they come. We appreciate this has been a stressful period for all parties as the Covid-19 situation continues to evolve. We’d like to reassure you that NES is still operating at full capacity and is on hand to support you should you have any queries or concerns. Please do not hesitate to reach out to your local representative.