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18th March 2020


Dear all,

Due to current global issues and after further reviews, HMRC/ Government have taken the decision to postpone the planned changes to IR35 till 6th April 2021. The proposed changes are highlighted below (and for reference),  we assume in the interim, Clients will revert to the current arrangements (as in policy prior to 6th April 2020 and contractor making determination.) But we will guide contractors when proposed for work.

We will continue to monitor the situation and update accordingly.

Kind Regards, PROFFS


For ref only (changes now planned to be implemented in April 2021):

Previously and prior to the 6th April 2020, the decision to the status, was born by the contractor (and or agent). If a legitimate PSC (LTD), and after due diligence, the fee payer (Agent in this case) will pay earnings gross and contractors company is responsible for NI and tax deductions of their personnel. However, the government has changed the way the status is determined, and it will be the UK end client that determines the status of the contractor (not the contractor or agent/ intermediary). The ruling changes where reviewed in February by the UK government, but no changes have been identified/ amended and this will be rolled out on the 6th April 2020.

Clients are aware of the changes and some have started to investigate ways to determine the status of contractors. Each client (subject to meeting the criteria as end client. I.e. turnover etc) will have their own way of determining status (i.e. outsourcing to third party accountants or using the GOV.UK CEST tool) but the final decision will be theirs.

Moving forward it will be a case of when we submit an individual for work, the client, and if contractor accepted, will then ask how the contractor wishes to be paid (via PAYE  or PSC/LTD).

If PAYE, and contractor already contracts this way, will just be as normal and no changes. However, if PSC/ LTD the client will then ask further questions on the contractors’ company, the full criteria of questions asked will be down to the end client, but we assume along the lines of the GOV.UK CEST test. The client will then determine the status of the contractor and advise PROFFS whether the contractor should be within ‘off payroll rules’ or not.

If the decision is given that contractor is outside ‘off payroll rules’ PROFFS will pay monies due gross, with no deductions. If within ’off payroll rules’ and after contractors’ acceptance of the work, PAYE deductions will have to be removed (including Employers NI) PROFFS can include contractor on our PAYE system for the period, deducting relevant NI and Tax. Legitimate Umbrella companies may also be considered too.

Further information can be seen at, you can also follow the links on this page to complete the current CEST test.