2021 is on the doorsteps and with just few more months until the new IR35 tax legislation is implemented, businesses who employ individuals as contractors through a personal service company should check the impact their business will have by these changes.
IR35, tax legislation was due to be implemented in April 2020 but was delayed because of COVID-19 and deferred to April 2021.
IR35 is complex legislation and highlights the importance for contractors to carry out due diligence at all the time, all the parties are to be aware of the rules and should obtain advice from IR35 experts to ensure they are compliant rather than face significant penalties and fines. Regulated Member firms should be conscious of the FCA’s rules relating to the use of agents and whether this is compatible with IR35 legislation.
Businesses are advised to assess whether their business is complaint and the arrangements and systems, and controls are appropriate and that self-employed agents are not operating outside of the regulatory boundaries and require authorisation, either directly or as an authorised representative themselves.