Complying with Changes

Action needed to comply with April 2020 changes to IR35

If you are a freelance business or your business engages freelancers, and in either case the freelancer works through a PSC or other intermediary, you need to see whether the April 2020 changes increase your administration work, its cost, or practical difficulties caused by the 2020 changes, and you also need to assess their commercial and financial impact on you.

If you engage freelancers , you should identify freelancers working for you through PSCs or other intermediaries, and you should also identify the whole labour supply chain. You then need to determine those freelancers’ status.

If you operate a PSC, you need to talk to your clients and any intermediaries about their implementation of the 2020 rules. You might be able to use your PSC for some clients but not others but in all cases you will need to look at the rules and their impact on your net income. You might need to see whether your clients will actually be prepared to continue to deal with PSCs at all, and whether if they do, they intend to alter the rates they pay your PSC to reflect the impact on those clients of the 2020 changes.

We recommend that you seek advice and guidance from suitable advisers or other sources. Some firms offer IR35 services as to the impact on you of the 2020 changes.

Please read our Guidance Note (which you can see here) for further detail of the above.