IR35 and Exemptions

Off-payroll only affects engagements where the client is a tax resident in the UK or if the worker completes the work in the UK.

The IR35 legislation does not apply to sole traders because they provide their services directly to clients and do not use a Personal Service Company (PSC) or any other intermediary.

Small companies are not impacted by the IR35 changes implemented in April 2021. However, some companies anticipating growth may proactively assess their contractors before they become obligated to do so.

Under the off-payroll legislation, some businesses are exempt from the private sector IR35 rules introduced in April 2021.

The classification sizes of companies are in the Companies Act 2006.