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IR35 rollout of 'off payroll' rules for the private sector by April 2020


IR35 Update 05/03/2019

As extensively reported, the Government has confirmed that they intend to roll out the 'off payroll' rules already applied in the public sector to the private sector from April 2020.

These changes will apply to most organisations that utilise contractors with responsibility for assessing worker employment status passing to them.  The changing responsibilities may affect a companies’ liabilities so it is important that businesses undertake a number of checks to ensure that they are prepared for their future obligations. 

The Government opened a consultation on 5th March with industry bodies including those representing Orion responding to it along with other interested parties.  The legislative timeline has the consultation closing on 28th May with draft legislation published during the summer this year.  It is possible that there will be some amendments to the legislation that was applied to the public sector but most commentators believe that this will be minimal.  There is also potential for the publication period to slip given the late closing of the consultation, past experience of legislative publications and other pressing matters affecting Parliament.

It is important to note that statutory employment rights are not affected by the proposed off payroll changes and that the method of determining an engagement status is not changing.

Orion retains significant corporate expertise on IR35 and has prepared a range of measures to assist our clients with their responsibilities.  Should you wish to discuss how the proposed changes may affect your business, please contact us.

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