What is Off-Payroll Rules?

In a nutshell, it moving the obligation of assessing a contractor’s IR35 status from the Personal Service Company (PSC) to the end client/user in the private sector. It is then up to the end client/user to make that status determination and produce a Status Determination Statement (SDS) showing whether the worker is inside or outside IR35.

Why is this relevant during COVID-19?

The proposed changes in the rules were due to come into force for contractors on 6 April 2020.

Has the Off-Payroll Rules been delayed?

Yes. The rules have been deferred for 12 months. At present, they are due to come into force on 6 April 2021.

Who’s responsibility is it to determine a contractor’s status at the moment with the delay?

It remains with the contractor whose end client/user is in the private sector to continue to assess their own status. Contractor’s working for public sector clients will continue to have their status determined by the end/client user.

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