As with the earlier changes to the operation of IR35 in the public sector, the effect is to shift the burden of assessing whether the legislation applies on to the hiring company rather than the personal service company. The assessment must be passed down the supply chain to the fee payer who is responsible for its implementation and operation of PAYE where appropriate. All parties to labour supply chains (and in particular public sector and medium and large private sector end-clients) will need to be aware of their obligations under the legislation, especially in light of the new mechanisms shifting the liability for operating PAYE in the labour supply chain. Even if the hirer is not the fee payer, it might still be liable for correct deductions if the fee payer should default.
We will provide an overview of the change in law with a focus on the key steps businesses should be taking now to prepare for April 2020. From commercial solutions to lessons learned from the public sector reform, we will provide a practical insight for your business, wherever you sit in the supply chain.