From 6th April HMRC’s IR35 legislation change comes into effect and applies to all bookings involving a freelancer operating via a Personal Services Company (PSC). Depending on the size of your business, it may be your responsibility to decide the IR35 status of a booking and record it in a document called a Status Determination Statement (SDS).
HMRC requires this SDS as the formal record of having considered the assignment’s working practices as well as the reasons behind your classification of your contract.
You are only exempt from this new SDS requirement if your business is small, or if you are a non-UK client (with extra caveats, please contact support).
If you are not exempt, you are required to attach your SDS before offering your booking to the PSC freelancer.
What do I need to do?
If you have a contract that is set to run over, or extended past the 6th April 2021, you will need to create a new IR35 compliant booking ahead of 6th April, with an SDS assessment attached.
Your current booking will need to be terminated on the 5th April, with the new contract ready to start on the 6th April, this includes any bookings you are set to extend past 6th April.