Originally scheduled for implementation in April 2020, this was bound over to now take effect on the 6th April 2021. Changes to the off-payroll tax legislation require you to identify self-employed consultants who offer their services through a limited company (personal service company) to your company. Please defer to the government online tools to determine if you have an obligation as a company to deduct income tax and national insurance contributions at source when paying the contractor https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm11000
You will also need to make clear in all consultant contracts whether the relationship falls inside or outside IR35. The changes will only affect medium to large companies, and it has been indicated that similar criteria as used in the Companies Act 2006 will be applied to define a medium/large business, which broadly indicates that a company will fall into this category if it has two or more of the following:
- a turnover of more than £10.2m;
- a balance sheet total of more than £5.1m;
- 50 employees or more.