It’s IR35 but Not As We Know it: Thresholds for Small Business have been changed

In some of the less spotted news that's out there at this moment in time, we're seeing a change to the way that IR35 is determined for businesses.

Some people are saying this will redraw the boundaries of the off payroll rules. But essentially from the 6th April this year, the classification of medium sized businesses will be amended.

This means 14,000 medium businesses will now be defined as a small business and you won't be captured by the requirement to undertake a self determination under IR35.

This has come about from a restating of what a small business is under the Companies Act 2006. So what this means now, is detailed below:

What this does is it brings into play another 14,000 businesses that when you're undertaking self determination for IR35, you won't be captured on that basis.

It still doesn't get away from the grandfathering obligations that come in by working for a small subsidury of large business. And by no means is this reversal of the IR35 changes.

What it is happily a nice amendment to what's been going on, nor does it stop deemed employment rights.

It will certainly free up a number of businesses to use and not be captured by those regulations at the right time. And hopefully it means it's a positive outcome for the majority of businesses.

If you need any more help with this or any of your HR headaches, I said to get in contact at info@ezhr.uk.