2021 IR35 Articles

IR35 Contractors: Watch Out For Unlawful Umbrellas

New IR35 rules due to take effect in the private sector from April 2021 could force thousands of limited company contractors to shutter their limited company and start using an umbrella company for the first time.

Joining an umbrella company is a tax efficient way to ensure IR35 compliance while also enjoying some for the benefits that come along with being an employee, such as holiday and sick pay.

Unfortunately some non-PAYE payment vehicles also describe themselves as ‘umbrellas’ and these schemes are often illegitimate.

IR35 Rule Change Set for 2021

Controversial changes to off-payroll working (IR35) rules are set to come into force in April 2021, after MPs ignored a call to delay the changes until 2023.

Changes to the way IR35 rules are applied in the private sector were originally penned to take effect in April 2020, before pandemic-related uncertainty forced a stay of execution from lawmakers.