This guide covers how IR35 off-payroll legislation will affect your recruitment business, clients and contractors.
Introduced in 2000, the IR35 legislation targets ‘disguised employment,’ where contractors use their own limited companies for tax benefits while performing roles similar to those of traditional employees. This measure aims to ensure these contractors, who effectively work as employees, are taxed in the same manner as directly employed staff.
Recent years have seen significant reforms to IR35, fundamentally altering the assessment of contractors’ employment statuses and their tax obligations. A crucial update in April 2021 for the private sector, following a 2017 reform in the public sector, transferred the responsibility for determining contractors’ employment status from the contractors themselves to the businesses that engage them. Concurrently, recruitment agencies (who are usually the closest party to the contractors PSC and therefore known as the deemed employer) have been tasked with ensuring accurate tax deductions.
This guide is designed to educate and support recruitment businesses in navigating the complexities of IR35 Off-Payroll legislation. Should you have any questions regarding IR35 or require further assistance, please get in touch with Marie Pegram.
Download our ‘IR35 Off-Payroll Guide for Recruitment Businesses’ using the form below.
Originally published 03/02/2020 – Last Updated 19/04/2024
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