How The New IR35 Rules Affect Labour Supply Chains

The new off-payroll working rules came into effect today (6 April 2021), which sees a major shake-up in the requirements around contractors working in the private sector via a personal services company (PSCs). Many people will know this existing framework as IR35. The reforms to the regulations were initially delayed for a year because of the coronavirus pandemic.

What is changing?

The new rules shift the burden of responsibility for determining employment status from the contractor to the end client. Businesses receiving the personal services of an individual via their limited company or PSCs will need to decide whether the relationship is one of deemed  employment (inside IR35) or genuine self-employment (outside IR35).