IR35 – new HMRC information and guidance

Tax buttons on calculator

From April 2021 the decision on whether someone is truly working for themselves – or is simply an employee in disguise – shifts from the freelancer to the end client in some circumstances.

If you run a limited company this could mean changes to the way tax is paid for some of the jobs you do.

I won’t go into all the details here. I’ve gone through some of the issues in previous blog posts, including this question and answer post.

You might like to see the HMRC guidance on all this, which has been updated on 27 October 2020 and all pulled together into one page on gov.uk.

https://www.gov.uk/government/publications/off-payroll-working-rules-communication-resources

This HMRC flow chart might help you so make sense of how decisions will be made.

I’m putting some basic IR35 explanations into some of my finance for freelancers courses.

NB: David Thomas Media Ltd is not responsible for the content of other sites nor any financial advice provided by them.

Posted on 30 October 2020

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