“Off payroll working” legislation will be introduced in the private sector from April 2021, from which point agencies will need to ensure that they do not pay PSCs gross if the assignment is caught by IR35. Contractors on assignment with “small” private sector end hirers are out of scope. After the introduction of the off-payroll rules the responsibility for determination of whether IR35 applied moves to the end hirer, with the agency (as the fee payer) becoming responsible for deducting employment taxes if IR35 applied.
The team at Compass have extensive experience with employment status and are ready to help you plan for the changes.
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