The rules are effectively simple and only apply to large and medium-sized businesses but not those classed as a small business. In the case of a small business, they will not need to determine the status of the contractor in order to minimise administrative burdens. The Government has stated that it intends to use a 'similar Criteria' like those found in the Companies Act 2006 to define a small business. The Act says that a company will be regarded as small if it has two or more of the following features below:
Turnover of £10.2m or less
£5.1m or less on its balance sheet
50 employees or less
If your use of contract staff is a significant part of your business, working with an agency you can trust, will then be an important part of the process. Our priority as the agency you trust will be to ensure your approach is fully compliant within the IR35 rules. We work closely with our end clients to navigate through, what will no doubt, be a difficult period for your industry and the private sector as a whole. We are advising all our end clients to use our Free impact assessment tool, as this will allow you to hire contractors into "outside IR35" roles.