Sarah Bradford examines what the extension of the off-payroll working rules will mean for clients.
The extended off-payroll working rules were due to come into effect from 6 April 2020, but the start date was put back by one year as a result of the Covid-19 pandemic. The rules will now take effect from 6 April 2021.
As clients reassess staffing needs once the coronavirus job retention scheme comes to an end, the impact of the off-payroll working rules should not be overlooked.
Off-payroll working rules and IR35
The IR35 rules were introduced to claw back employment taxes that the government felt were being avoided where a worker provided services to an end client through an intermediary (e.g. a personal service company) and, but for the existence of the intermediary, the worker would be an employee of the end client. <>
