IR35 Reforms

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The start of April sees a number of important changes that employers in the UK need to be aware of:

1st April 2021 – Increases to National Minimum Wage (employers should note the change to the age categories):

  • Age over 23: £8.91 (from £8.72 for over 25 year olds)
  • Age 21-22: £8.36 (from £8.20 for 21-24 year olds)
  • Age 18-20: £6.56 (from £6.45)
  • Age 16-17: £4.55 (from £4.62)
  • Apprentices: £4.30 (from £4.15)

4th April 2021 – Statutory rate increases:

  • Statutory sick pay: £96.35 per week (up from £95.85)
  • Statutory maternity, paternity, adoption, shared parental, and parental bereavement pay: £151.97 per week (up from £151.20)

Continue Reading Important upcoming changes that UK employers need to be aware of

With 6 April 2021 quickly approaching, the IR35 reforms are now back on the agenda and fast becoming a priority. Affected businesses need to have their implementation process in place before the IR35 reforms take effect.

IR35 is designed to ensure that appropriate income tax and national insurance contributions (NICs) are paid by contractors who provide their services through an intermediary company. In a nutshell, the IR35 rules bite where, but for that intermediary company, the individual contractor would be deemed an employee of the client. The IR35 reforms are important as they require medium and large businesses to carry out status determinations to assess whether IR35 applies. Where they conclude that IR35 applies (i.e. that there is deemed employment), the IR35 reforms shift responsibility to the client for making tax and NICs deductions through PAYE.Continue Reading IR35 changes – Are you ready?