How do the changes to small business thresholds affect IR35/off-payroll? Dave Chaplin explains all.
The government’s recent changes to the ‘small company’ thresholds are designed to free more businesses from reporting burdens. However, they also affect which companies should consider the off-payroll rules – because small businesses in the private sector are exempt.
Navigation of the statute reveals that the earliest an existing medium company can qualify as small for the purposes of off-payroll is 6 April 2027. And it could be later than that.
This confusion is caused by differences between the criteria for ‘small’ for reporting purposes, and ‘small’ for off-payroll purposes.
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