When to apply the off-payroll working rules (IR35) if you receive services from a worker through their intermediary.
Changes to the off-payroll working rules came into effect from 6 April 2021. Find out how the new rules apply to clients.
You are a client if you receive services from a worker. The off-payroll working rules make sure workers pay broadly the same tax and National Insurance contributions as an employee if they:
- provide services to you through their own intermediary - most commonly a limited company that they control
- would have been an employee if they were providing their services directly to you, the client
The intermediary will normally be the worker’s own personal service company, but could also be a partnership, a managed service company or an individual.
The private sector includes third sector organisations, such as some charities.
When the rules apply
At the moment, the worker’s intermediary is responsible for deciding if the off-payroll working rules apply.
As the client receiving a worker’s services, you need to be aware of the off-payroll working rules and how changes to these in April 2021 will affect you.
Find out what the changes are and start making preparations for them now.