What are the changes?
The responsibility for operating the off-payroll rules will shift from the individual to the end client (employer), recruitment agency (Major Players) or another third party engaging with the contractor (umbrella company)
A client will be exempt if it meets two of the following criteria:
- Annual turnover - does not exceed £10.2m
- Balance sheet total - does not exceed £5.1m
- Number of employees - does not exceed more than 50
'Reasonable care' must be taken during the decision process to ensure the IR35 determination status is correct.
Once the determination status has been established, this needs to he communicated with all appropriate supply channels, including the worker.
For assignments that fall within IR35, Tax and NIC will need to be deducted at source from the workers income by the 'fee payer' - either the employer, Major Players or the umbrella company. Dependent upon pay-type, employers HMRC liabilities are also taken into consideration.