When IR35 was introduced in April 2000, the responsibility of determining employment status for tax purposes sat with the contractor. Following consultation due to non-compliance, changes to IR35 were introduced to the UK public sector in April 2007, whereby the responsibility of determining employment status for tax purposes moved from the self-employed individual to the hiring organisation. Gov.UK states that someone is probably self-employed and shouldn’t be paid through PAYE if most of the following are true:
Up until April 2021, contractors will continue to be responsible for determining their status under IR35, however, as of the 6th April 2021 onwards, this responsibility will move from the contractor to the hirer. The extension of this tax legislation raises questions that each hirer should answer sooner rather than later if they don’t want to face potential financial penalties. Jump back to our IR35 hub and start your IR35 journey.
For more information on understanding the Off-payroll working rules please visit
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