Promotional material

Off-payroll working rules: communication resources

Use these materials to communicate with your members, clients and customers about changes to the off-payroll working rules (IR35) from April 2021.

Documents

Contractor flowchart - off-payroll working (IR35)

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Information leaflet for contractors – off-payroll working rules (IR35)

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Short case study: perspective of contractor and client - off-payroll working rules (IR35)

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Details

The government has announced it is postponing the reforms to the off-payroll working rules (IR35) from April 2020 to 6 April 2021. This is a deferral of the introduction of the reforms, not a cancellation. The government remains committed to introducing this policy to ensure that people working like employees, but through their own limited company, pay broadly the same tax as individuals who are employed directly.

The policy will be introduced on 6 April 2021 representing a 12-month delay.

This deferral has been announced in response to the ongoing spread of coronoavirus (COVID-19), to help businesses and individuals deal with the economic impacts of the pandemic. Find out more about the economic support for businesses and employers: COVID-19: guidance for employees, employers and businesses.

Support for small businesses and individuals during the coronavirus (COVID-19) pandemic - Statutory Sick Pay

The government has announced a package of support for small businesses and individuals to deal with the costs of absence due to coronavirus (COVID-19).

In summary:

  • individuals who are employed by a Personal Service Company are entitled to Statutory Sick Pay on the same terms as any other employee
  • for those Personal Service Companies who are eligible that make payments under Statutory Sick Pay as a result of COVID-19, the Personal Service Company will be entitled to a rebate where they meet the criteria of that scheme - for example less than 250 employees up to 2 weeks COVID-19 related Statutory Sick Pay per employee
  • individuals not eligible for Statutory Sick Pay (for example the self-employed and very low earners) will be able to receive support from the benefits system
  • individuals who have paid sufficient national insurance contributions, even through multiple jobs, will be entitled to new style Employment and Support Allowance - if they haven’t made sufficient contributions, they can apply for Universal Credit
  • these individuals will benefit from the Budget 2020 announcements to remove the 7 waiting days in new style Employment and Support Allowance and, if they are self-employed, the Minimum Income Floor in Universal Credit

Read full guidance on Statutory Sick Pay and the Statutory Sick Pay employer guide.

How to use this pack

This communications pack sets out information about the off-payroll working rules and the changes that will take effect on 6 April 2021.

It includes information, resources and materials to help you communicate to your audiences about this reform. Please use the resources that are most appropriate to your audiences.

Please share items from this pack with anyone who may be affected by the changes, such as contractors who you may interact with as part of your role, or enquiring constituents if you are a Member of Parliament. We also suggest that you share items from this pack with your communications team and those who manage your organisation’s social media channels.

Guidance content

These materials are supplementary to full guidance on the off-payroll working rules, and one of the main things we suggest is that they are shared as widely as possible.

Please make sure you and your members are familiar with these pages - they are the primary source of guidance on IR35.

Materials in the pack

Outcome of the off-payroll reforms review

The government has published the report of a review into the implementation of the reform into the implementation of the reform. It confirmed that the changes will go ahead, and made a number of technical changes to the rules to make it easier for businesses to implement.

Published 27 February 2020