April 2021 changes to off-payroll working for intermediaries and contractors
Understand and prepare for changes to the off-payroll working rules (IR35) if you’re a contractor or an intermediary and your worker provides services to a client.
An intermediary (usually a limited company) will normally be a worker’s personal service company, but could also be a partnership, a managed service company, or another person. A worker is sometimes known as a contractor.
Off-payroll working rules
How the off-payroll working rules are applied will change on 6 April 2021.
Before 6 April 2021, if your worker provides services to a client through you:
- in the public sector, the client must decide your employment status
- in the private sector, you must decide your worker’s status
From 6 April 2021, all public sector clients and medium or large-sized private sector clients will be responsible for deciding your worker’s employment status. This includes some charities and third sector organisations.
If the off-payroll working rules apply, your worker’s fees will be subject to tax and National Insurance contributions.