Tax expert Paul Mason from Markel talked through the changes, how to ensure your business is compliant and vitally how you should be communicating with any contractors working through your business, whether they be trade based labour only subcontractors, surveyors, engineers or IT contractors.

The off-payroll working rules (IR35) apply to any worker/contractor that contracts through their own limited (personal services) company. The rules are designed to ensure that workers, who HMRC assert should be classed an employee, pay broadly the same tax and National Insurance contributions as employees.

From 6 April 2021, responsibility to identify the status of the worker and ensure tax is paid is shifting to the company engaging the contractor. This applies to medium or large-sized private businesses, essentially all companies who meet two of the following three criteria:

• turnover is greater than £10.2m a year;
• balance sheet assets are greater than £5.1m
• have more than 50 employees