Off-Payroll working arrangements from April 2020

Changes will come into effect in April mainly affecting those working through their own Limited Company who are working for only/mainly one client/end user and where the employment status would indicate that of an employee.

The main change is that the end user/client is responsible for determining the status using the HMRC Check Employment Status for Tax (CEST) and if you are determined to be an ‘employee’ for tax purposes then you will be caught by the Off-Payroll arrangements.

The rules will apply where your client/end user meets 2 or more of the following conditions:

  • Annual turnover of more than £10.2 million
  • Balance sheet total of more than £5.1 million
  • More than 50 employees  

Small businesses (i.e the size of your customer/end user) will continue under the existing IR35 rules.

This will have a financial impact on your available income.

If you think you may be affected by the new rules and want to know how this will impact you then please contact us to discuss further.