January 2020
Preparing for the private sector IR35 changes from 6 April 2020
The purpose of this Tax Digest is to give a brief history of 'IR35' legislation and explain the changes taking place from 6 April 2020 in relation to how IR35 will operate in the private sector according to current legislative provisions, policy and guidance available at the time of writing.
In this Tax Digest
- Purpose of this Tax Digest
- Introduction to IR35
- The evolution of IR35
- Other behavioural considerations
- Devolution of taxes within the UK
- Changes in the public sector
- Lessons from the 2017 public sector changes
- HMRC forecasts
- HMRC's expectations
- The new private sector rules and who they apply to
- Qualifying criteria
- When do the rules specifically not apply?
- 'Small' entity considerations and risks
- Engager (end user) reverts to being 'small' from medium or large
- Non-corporate entities
- The status determination
- Paying the intermediary
- Material interest provisions relating to the intermediary
- Training and involvement in the new rules
- How to make a status determination
- The 'reasonable care' concept
- HMRC's CEST tool and guidance
- Principles of employment status determination
- Employment rights
- Managed service companies, umbrella companies and the CIS
- Responsibilities of the parties
- Disputes over status determinations
- Potential unintended consequences
- Changes to the deemed employment payment in the intermediary
- Defending decisions relating to employment status
- A summary of the main tax cases and outcomes since the public sector IR35 regime introduction in April 2017
- Further thoughts on RALC and Ackroyd
- The cost burden for engagers and fee-payers
- Understanding the supply chain
- Transfer of liability for PAYE and NICs
- Preparing for the April 2020 changes
- IR35 – potential opportunities for businesses
- The IR35 implementation review
- Accounting process and tax issues
- Do's and don'ts for engagers/end user businesses
- The consequences of getting it wrong
- IR35 in the context of the Taylor Report – Good Work Plan; and Brexit
- What to expect between now and April 2020
- Further reading
- List of helpful tax cases related to Mutuality of Obligation
Previous editions
New Browse the archive below
December 2020UK Digital Services Tax
November 2020Preparing for the Private Sector IR35 Changes from 6 April 2021
October 2020Mergers, demergers and reorganisations
September 2020Property Taxes
August 2020Tax compliance - update
July 2020Selling your trading company
June 2020Tax strategies for COVID-19 distressed owner-managed businesses
May 2020Offshore structuring
April 2020TUPE - Brexit impact and other recent developments
March 2020Brexit - Potential Tax Implications
February 2020Disguised remuneration
January 2020Preparing for the private sector IR35 changes from 6 April 2020