Changes to the Off-Payroll Regulations, commonly known as IR35, came into force on 6 April 2021 and could potentially affect the position of NEDs who are also providing services through their intermediary companies to the hirer company.
On 6 April 2021, new off-payroll regulations (known as IR35) were introduced which have a huge impact on recruitment agencies supplying contractors operating personal service companies. What do recruitment agencies need to know to be prepared?
Whilst the off-payroll rules were due to be in force from 6 April 2020 but were postponed due to the pandemic, the rules are to be enforced on 6 April 2021. These are part of the Finance Act 2020, which became law on 27 July 2020.
The NHS has revised its decision to put all contractors working through an intermediary, such as a personal service company (PSC), onto the payroll following the recent changes to IR35 in the public sector.