Understand the reforms to the IR35 legislation

What is IR35?

Reforms to IR35 legislation, which came into force in April 2017 for the public sector, passed the responsibility for determining the tax status of all personal service company (PSC) interim workers to the hiring organisation, including potential liability for tax and national insurance contributions.

In the Autumn 2018 budget, it was confirmed that the legislation would be extended to the private sector in April 2020, for large and medium-sized organisations. However, due to the coronavirus pandemic, this was delayed until April 2021.

What should you do now?

Employers who will be affected by the change in legislation should take steps to ensure they can continue to engage with the talent they require once the reforms are in place.

The experience Hays has gained working with the both the public sector and the private sector to mitigate potential risk from IR35 makes us the ideal partner to support and guide your recruitment strategies. Start preparing now so you’re not caught out by the reforms, get in contact with your Hays consultant to find out more.

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Countdown calendar to IR35 reforms

The reforms to IR35 legislation are just one of many challenges for employers to consider in the lead up to April 2021. To help ensure your preparations for IR35 reforms remain on track, use our countdown calendar to see what you should be considering and when in the coming months.

Download countdown calendar

Managing contractors – a quick guide

It can be complex to manage limited company contractors, so we have partnered with leading firm Travers Smith LLP to create this quick guide on what you should and shouldn’t do when managing contractors.

Download guide