IR35 “off payroll” rule may be extended to the Private Sector

It was not covered in last months Budget speech, however the other documents released on Budget day mention the possible extension of the rules for personal service companies in the public sector to workers in the private sector.

The government will consult in 2018 on how to tackle non-compliance with the intermediaries legislation (commonly known as IR35) in the private sector. The legislation which currently only applies in the public sector seeks to ensure that individuals who effectively work as employees are taxed as employees, even if they choose to structure their work through a company.

At this stage we do not know what this would mean for these individuals and will keep you updated as soon as we know more.