IR35 update!

Finance Bill 2018-20 just issued. The private sector IR35 rollout is due to implemented in April 2020. Summary states: "This finance bill....ensures that from April next year - off-payroll working rules will ensure that two people working side by side in a similar role for the same employer pay the same employment taxes"

From initial review it appears to be in line with the public sector approach. Key highlights are:

• End client (large and medium sized organisations) to determine the status of the contract and ensure respective taxes are deducted (through the 'fee payer').
• 5% allowance in the PSC for the administration of the off payroll rules to be removed (i.e. it would not be feasible to use your PSC in an engagement caught by the off payroll rules).

It is now over to the employers to determine their implementation approach!