IR35 legislation changes take effect in April 2021
By this date, you must make an accurate assessment of these workers' tax status AND ensure that the correct taxes are collected via your supply chain. If you fail to make accurate assessments and then not make the appropriate changes as to how you engage Limited Company contractors, then you could find that you are liable for underpaid taxes.
What is IR35 legislation?
IR35 was originally introduced in 2000 to ensure that workers cannot avoid paying taxes when listed as a contractor while working directly for an employer. Post-April 2021 will see this legislation put the responsibility of running these checks at the feet of private sector businesses. To read more on the IR35 changes, click here.