Small clients ― who is affected by off payroll working (IR35) for large clients?
Employment Tax
Guidance
For the private sector, rules apply from 6 April 2021 in relation to the engagement of off payroll workers ― see the Off payroll working (IR35) ― public sector, large and medium clients ― overview guidance note.
Legislation to define what is ‘small’ applies from April 2021. Any private entity that is not small will be caught by the off payroll working rules. HMRC guidance is available on GOV.UK. See Simon’s Taxes E4.1041A. HMRC guidance is at ESM10006–ESM10009.
Rules differ by type of legal entity
Companies, LLPs, unregistered companies and overseas companies
For the purposes of this legislation, unregistered companies and overseas companies are as defined in CA 2006.
Single entity
Where the entity is a single entity (ie not part of a group, joint venture, or similar), engaging off payroll workers:
- •
where it has no accounts filing date before the start of the tax year (ie because
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