HMRC has announced that the introduction of the new IR35 rules, that were to have come into effect in April, are to be deferred until April 2021.
This means that medium sized companies, when making use of individuals paid through their personal service companies (PSC) (or umbrella company), will not now from April 2020 have to make a judgement as to the status of the individual and will have no obligation to deduct tax & NIC from payments to them.
However, the existing rules remain in place and it should be noted that;
- The responsibility to make a judgement regarding status remains with the individuals operating through their PSC or umbrella company.
- You do still have a responsibility to check the status of individuals working for you on a self-employed basis, to ensure that they are correctly classified as self-employed.
Do let us know if further clarification required.
For our Institute’s full briefing notes, see here.