HMRC has published an off-payroll working factsheet for contractors covering the reforms to the off-payroll working (IR35) rules from April 2020. The two-page factsheet provides a good overview of the changes.
Contractors affected will be those who work through an intermediary (eg, a limited company often known as a personal service company (PSC)) and provide their services to public sector clients or, from April 2020, to medium or large-sized clients in the private sector.
Contractors who from April 2020 provide such services to small clients in the private sector are not affected by the reforms. The factsheet also provides links to further guidance.
HM Treasury has also has a factsheet which was published in October 2018 and updated in July 2019. It explains the changes in further detail.
QUOTE: Where the rules apply, it is important to note that, unless you have a direct employment contract, you will not be classed as a direct employee of the hiring organisation you provide your services to. This means that you will not be entitled to statutory payments or employment rights from them.
The above quote from the factsheet underlines the fact that a worker can be an employee for tax purposes but not for employment purpose. Sounds wrong doesn't it? This remains absolutely unacceptable. Government should enact a statutory definition of employment that applies for ALL purposes. ICAEW should be lobbying very strongly for this. Those who say it is too difficult are merely restating the problem! For about 100 years they thought a statutory residence test was too difficult.