In April 2017 the IR35 rules were modified so that a public authority client rather than an intermediary were responsible for determining whether IR35 applies.  If the public authority client decides that IR35 applies, they, rather than the Intermediary, is generally responsible for deducting income tax and employee NICs at source.

The government has announced that they propose to extend this change in the IR35 legislation to the private sector.   The scope of the changes is to be limited to where the end client is a non-small company.

This will affect limited companies in which provide services to non-small companies and which have previously determined their own IR35 status.