Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

IR35Latest NewsFreelance workersTaxWorkforce planning

IR35 changes take effect in private sector

by Ashleigh Webber 6 Apr 2021
by Ashleigh Webber 6 Apr 2021 Shutterstock
Shutterstock

Changes to the off-payroll working rules – known as IR35 – take effect in the private sector today (6 April).

It means that the responsibility for determining the employment status of a contractor will shift to the organisation using their services.

IR35

IR35: An opportunity to rethink how skills are sourced?

Government waives IR35 penalties for one year

How to get ready for IR35 ahead of April 2021

The rules apply to all medium and large-sized private sector firms, as well as all public sector authorities.

Dave Chaplin, CEO of contracting authority ContractorCalculator and assessment tool IR35 Shield, estimated that 60,000 businesses, 20,000 agencies that supply contractors and 500,000 contractors will be affected by the new legislation.

Although businesses have had several years to prepare for its introduction, an IR35 Shield survey earlier this year found 52% of contractors were yet to be assessed by the organisation they provided services for.

“The dust will settle and businesses will soon recognise the off-payroll bogeyman for what it is. Once some begin to test the water by engaging limited company contractors, others will undoubtedly follow, not least because the flexible workforce is the bedrock of UK plc and the UK economy,” said Chaplin.

“I would urge contractors to hold their nerve and for those hirers who are not prepared, it may be prudent to terminate or pause any existing contracts with contingent workers immediately and then start assessing them before they continue their work.”

Seb Maley, CEO at IR35 specialist Qdos, said that businesses have gotten on board with the changes in recent months.

“The tide has turned, with thousands of businesses now aware of the fact that IR35 reform is manageable. These firms, who have prioritised compliant IR35 status decisions and will continue engaging contractors, are set to gain a huge advantage over those who have banned contractors because of the changes – a short-sighted and totally needless decision,” said Maley.

“Despite IR35 reform and the problems the changes create, I am optimistic about the future of contracting. The economic climate, the changing makeup of the workforce and the growing demand for flexible, skilled and cost efficient workers suggest contracting is here to stay in spite of these changes.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Chaplin recommended that organisations and contractors work together to ensure their working relationship remains “outside-IR35” by: assessing IR35 status comprehensively; ensuing the contractual terms align with the relationship; agreeing and signing a Status Determination Statement; ensuring the engagement operates in alignment with the original intent; and monitoring and collating supporting evidence throughout the contract.

Recruitment and resourcing opportunities on Personnel Today

Browse more recruitment and resourcing jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Changing immigration rules and how employers can benefit
next post
National insurance relief for hiring veterans starts today

You may also like

Postmasters could take ownership of Post Office

14 Jul 2025

Ethnicity and disability pay gaps: Ready to report?...

14 Jul 2025

Manager dismissed after covert recording with HR wins...

14 Jul 2025

Food sector warned it is facing a workforce...

14 Jul 2025

Gregg Wallace investigation: 45 allegations upheld

14 Jul 2025

Black TV professionals’ experiences of racism are rife,...

14 Jul 2025

Steep reduction in recruitment in June

14 Jul 2025

Two-thirds drink to cope with work stress and...

14 Jul 2025

Why online training won’t help reduce sexual harassment

14 Jul 2025

Three-quarters more likely to stay with employer who...

14 Jul 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+