Understanding IR35 and Off-Payroll Working Rules

IR35 is tax legislation introduced in July 2000 to tackle tax avoidance by individuals providing services through intermediaries - such as Personal Service Companies - who may not be paying the appropriate levels of income tax and National Insurance.

Following a delay due to the Covid-19 pandemic, the updated Off-Payroll Working Rules (commonly referred to as IR35) came into effect in April 2021.

Prior to this change, it was the contractor’s responsibility to determine whether IR35 applied to their engagement. From 6th April 2021 onwards, that responsibility shifted to the hirer or end client. It is now up to the client to assess the IR35 status of each assignment, determining whether it falls Inside or Outside of IR35.

At CBSbutler, we have a thorough understanding of the IR35 legislation and its implications. We’re here to support both clients and contractors in navigating the Off-Payroll rules with confidence and clarity.