IR35 has changed significantly over the last few years and now there are different rules for different sectors and different sizes of organisation (so much for tax simplification).
If your organisation is a public sector body or is deemed medium or large by the Companies Act, the new 2021 provision’s will apply, and your organisation will be responsible for determining whether IR35 applies. Trinity Tax can help guide you through this to ensure your organisation remains HMRC compliant and not exposed to risk.
IR35 effectively ignores any intermediaries and considers whether the worker would have been an employee of the end client had they contracted directly with them.
The changes in 2021 mean that public sector bodies and medium and large companies have to take “reasonable care” in determining IR35 and must issue a Status Determination Statement. It is possible to use HMRC’s Check Employment Status for Tax (CEST) tool for achieving this but be warned that this has been subject to huge criticism as it misses out important case law principles.
