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IR35

New rules

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What I am still confused about is - do changes that come into force in 2020 are about whose responsibility it is to determine the status or is it about anyone who's status gets proved to be an employee has to by under PAYE, because these are two different things.

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By ms998
19th Nov 2019 10:48

IR35 applies to payments made to intermediaries. An intermediary can be a partnership or a company (or even an individual but this is unlikely).

If the payment is the personal services then you have to mak a determination that if the worker contracted directly would they have been an employee. IF yes then you deduct PAYE/NI from the payment you are making to the intermediary.

IF the supply chain is longer, eg recruitment company involved, then you need to pass the determination down the supply chain and they will make the PAYE/NIC deductions.

None of this has any impact of payments being made to self employed people who are within the normal rules of deciding whether they are an employee or not.

This is the quick answer. There is more detail behind a lot of this.

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