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Contractors get ready – IR35 reform is almost here

IR35 reform has been one of the most controversial and confusing sagas ever seen in the legislative world.

It’s driven a real wedge between a lot of contractors and their end-clients, has seen groups formed across the UK to protest the reforms, and has been consistently criticised by some prominent MPs.

The most amazing thing about the controversy surrounding IR35 is that the reforms haven’t even been implemented yet!

That’s set to change on 6 April 2021, though. After much debate and delays brought on by Coronavirus, the legislation finally becomes active.

That means that contractors and their clients have approximately six weeks left to become IR35-compliant.

Some, though, are still desperately confused by IR35 and what it means for them, their clients and the way they work.

Even though time is short, don’t panic! The Greatpay team is here to help you understand IR35 reform and adapt to it.

A brief history of IR35 reform

IR35 was first introduced by HMRC in 2000 in a bid to tackle ‘disguised employment’ – workers who were taking advantage of the tax breaks afforded to contractors while, essentially, working as a full-time employee for a single client.

Contractors setting up their own limited company and who were working for a sole client would be assessed to see if they were under IR35, and if they should be classed as an employee rather than a contractor.

The onus has always been on the contractor to gauge whether they fall under IR35 or not. As of 6 April 2021, though, it’s up to their end clients in the private sector to assess a contractor’s IR35 status.

The changes were announced in the 2018 budget and were due to be implemented in April 2020. The Covid-19 outbreak pushed reforms back to 2021, though, when they will finally be implemented.

Despite nearly four years passing since the announcement of the reforms, there is still a lot of confusion between contractors and their clients about what changes need to be made to reach IR35 compliance.

Get ready for IR35 reform with our expert team

A survey of more than 3,000 contractors carried out in January 2021 across the UK found that more than 52% of ‘in-work’ contractors have yet to be assessed for IR35, while 86% say they have still not been provided with a Key Information Document (KID).

Though there is a section on the government website designed to help people come to terms with IR35 reform, there are clearly still contractors across the spectrum in the UK who are confused about the legislation and what it means for them.

Our expert IR35 specialists are here to help. It’s the Greatpay way!

We will work with you to help break down IR35 legislation, so it’s easy to understand and you can see how it affects the way you work.

We’ll help you reach IR35 as quickly as possible and, most importantly, give you expert advice on how you can future proof yourself against IR35, for 6 April 2021 and beyond.

Don’t let IR35 take up another moment of your time. The Greatpay team is here to help! Contact us today to find out more about how to become IR35-compliant.

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