IR35 rules for the private sector

KEY POINTS

• The public sector working rules will extend to the private sector from April 2020.
• The private sector rules will apply to medium-sized or large clients only.
• End clients will have to review their engagements with the personal service companies.
• HMRC’s CEST tool can help to determine whether payments are caught by ITEPA 2003 Pt 2 ch 8.
• Beware of differences of opinion on contract status between end clients and agencies.
• Some ‘work arounds’ to the rules are already being suggested.
• Do not overlook the application of the rules on self-employed individuals working through agencies.
• There can be little surprise that the much-debated changes to the IR35 rules were finally announced in the recent Budget statement (see...