If your business engages contractors, either directly or through an agency, who work through intermediaries (e.g. personal service companies), you need to prepare for significant changes being introduced in April 2021.
These changes will put the onus on the business using the contractor (the "client") to decide their employment status for tax purposes, pass this on to others in the supply chain (including the contractor) and in some cases to deduct and pay tax and national insurance contributions to HMRC in respect of them.
This means businesses need to look closely at their arrangements with contractors and make changes now in order to deal with the new rules. Our expert team of employment and tax lawyers can help you prepare with our 5 step plan:
| Audit: | Decide employment status: | Strategise: | Update contracts: | Systems and knowledge: |
| Helping you audit your workforce to identify those workers that may be affected by the new rules and, where necessary, carry out checks on the supply chain | We have the tools and knowledge to help you make informed decisions on worker status and justify them | We can help you assess how the reforms will affect your business and decide what action to take | We can update your contracts with new and existing contractors and agencies | We can provide training for the people in your business who need to understand how these rules operate and help you put in place the systems, policies and procedures you need to comply with the new rules |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.