IR35 changes – April 2020

Context of the changes


Working via a PSC (or some other form of intermediary) is often referred to as “off-payroll working”, and the tax rules that apply to it are usually referred to collectively as “IR35”. As IR35 now operates and as it will operate after changes are made to it in April 2020, IR35 does not alter or dictate the employment law position in relation to workers’ rights or as to whether someone is employed as opposed to self-employed. Nor does IR35 alter the general tax law establishing the amount of tax liability.

As it currently operates, and as it will operate from April 2020, IR35 is only a means to aid collection of the full and correct amount of tax and National Insurance (“NI”) to be paid in respect of certain payments for work done where a freelancer works through a PSC. To find out more about IR35, check out our Guidance Note On Employment, Self-employment And IR35 as background to HMG’s proposed changes to IR35. You can find the Guidance Note here .

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