Proposals for IR35 Reform in the Private Sector

    View Author May 2018

    As forewarned in the Autumn Budget 2017, on 18 May 2018 the UK government opened a consultation into off-payroll working in the private sector. More specifically, this concerns the use of personal service companies (PSCs) and the application of the IR35 rules in the private sector.

    It is likely that the consultation will lead to the implementation of new rules the same as or similar to those that have applied to the public sector since April 2017, whereby the end-user (rather than the PSC) is required to determine whether IR35 applies and the responsibility for dealing with PAYE and National Insurance (NI) where IR35 does apply rests on the payer of the service company (i.e. the end-user or, if applicable, the agency rather than the PSC).