IR35 Soft Landing Ending – Industry Trends
The IR35 rules changed in the Private Sector as of April 2021 – Making it the client’s responsibility to determine the employment status of their contractors, produce an SDS (Status Determination Statement), whilst ensuring they take ‘Reasonable Care’ in their decision and on an ongoing basis.
What this means for hirers:
- The HMRC ‘soft landing’ for IR35 ends in April 2022
- HMRC will begin investigating private sector businesses that hire contractors
- Any Unpaid Tax and NIC would still be due from April 2021
- Fines, penalties and interest now added from April 2022
- Outsourcing the determination process to a 3rd party may not pass Reasonable Care
Over the past 11 months, we have witnessed some worrying trends from businesses adopting risky IR35 strategies and in our latest series, we will examine the issues that come with each approach.
In our recent survey, completed by more than 500 businesses, we have learnt the effects IR35 has had on businesses and the repercussions this has resulted in. For example, over 90% stated they had to increase contractor rates as a result of IR35.
For further insight into our findings, download our report and keep an eye out for the next instalment of blogs to ensure your business has taken reasonable care, removed the risks of large fines/ penalties and has a process for ongoing compliance!
For any business that is concerned with what they have read so far get in touch, as we would be happy to offer our expertise along with a selection of free IR35 reviews to test your process.