Research and analysis
Effects of the off-payroll working reforms on employment agencies
Research into the effects of the off-payroll working reforms on employment agencies.
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The off-payroll working rules, also known as IR35, were first implemented in 2000, and later reformed in 2017 for public sector organisations. Further reform will be introduced in April 2021.
The rules ensure individuals who work like employees but through their own limited company (often known as a personal service company) or other intermediary pay broadly the same Income Tax and National Insurance contributions as individuals who are directly employed.
This report explores the effects that the 2017 reform and 2021 reform have had on employment agencies. The research consisted of 34 qualitative interviews. The research aimed to understand:
- the effects of the 2017 reform on employment agencies, and to provide insights into how contractors may have been impacted
- what further support agencies might need from HMRC on the off-payroll working rules ahead of the changes in April 2021
- the early effects of the 2021 reform
Updates to this page
Published 23 March 2021