Review off-payroll workers now, urges leading accountant

Birmingham-based Salhan Accountants today urges employers to step up preparation for changes to off-payroll working rules, also known as IR35.

From 6 April 2020, medium and large organisations will have new compliance obligations. These relate to individual off-payroll workers (or contractors) who provide services as a company, partnership or sole trader. Under the new rules, employers will be responsible for assessing the employment status of these workers to ensure they aren’t technically employees for tax purposes.

Off-payroll working rules are designed to ensure that – if contractors essentially work as employees – they pay broadly the same tax and National Insurance as directly employed staff.

“Under new off-payroll rules, employers will be responsible for ensuring off-payroll workers meet the legal requirement for being classed as contractors – and that they’re not de facto employees,” said Dr Anjulika Salhan, Director at Salhan Accountants.

“Employers need to start preparing now, so they’re confident in compliance for 6 April. This involves reviewing contractor arrangements to ensure no off-payroll workers can technically be classed as employees.”

In February, HMRC finished a consultation on the new rules. Off-payroll working rules originally came into force in 2017 for the public sector, and are now extending to medium and large organisations in the private sector.

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Notes for editors

Salhan Accountants is a Birmingham-based accountancy firm with offices in the West Midlands and London. It offers a wide range of personal and business services and has won numerous awards. Its most recent accolade was at the English Women’s Awards, where Director Dr Anjulika Salhan won in the Accounting and Finance category.

Media enquiries

Dr Anjulika Salhan

0121 455 7475

anjulikasalhan@salhanaccountants.co.uk