New HMRC factsheet on IR35 for contractors
HMRC has published an off-payroll working factsheet for contractors covering the reforms to the off-payroll working (IR35) rules from April 2020.
The two-page factsheet provides a good overview of the changes, explaining:
- which contractors are affected;
- how the changes will affect them; and
- what they need to do before April 2020.
Contractors affected will be those who work through an intermediary (eg, a limited company often known as a personal service company (PSC)) and provide their services to public sector clients or, from April 2020, to medium or large-sized clients in the private sector.
Contractors who, from April 2020, provide such services to small clients in the private sector are not affected by the reforms.
The factsheet also provides links to further guidance.
HM Treasury has also has a factsheet which was published in October 2018 and updated in July 2019. It explains the changes in further detail.