Reforms to IR35 legislation are coming into effect in April 2021 for medium and large private sector companies. At this time, failure to comply with the regulations could leave you exposed to extra expense and risk. Does IR35 apply to you? Before you start to panic at the thought of having your contractors all quit, missing deadlines, and clients leaving in droves, check it’s applicability to your business.
If you are an early stage startup with annual turnover not more than £10.2 million, a balance sheet total not more than £5.1 million and less than 50 employees, the good news is that you won’t be affected at this stage. However, for all other businesses it’s crucial you digest the information below and put a plan in action now if you haven’t already done so.
To ensure you’re prepared when IR35 reforms come into play, you want to be taking the following steps:
1. Review your internal resources
Firstly, it’s important to review expertise and resources within your organisation to take ownership of who will enforce the IR35 regulatory changes and manage this. Seek external counsel if this is required.