The rules used to determine IR35 status are not changing, so in theory, if you are legitimately contracting through a Limited Company now, then you should be able to continue to do so post-April. However, our experience of the changes being implemented in the Public Sector suggest that some end hirers may take a more risk averse stance, deeming a larger proportion of contractors as inside IR35 as a result.
This may result in some contractors needing to work through an Umbrella Company from April 2021. This creates an overarching contract between you and the hirer and deals with your admin, tax and payroll. The hirer pays your Umbrella Company who takes off their fee, National Insurance and income tax and passes what’s left on to you. You’re effectively taxed as an employee.
For these reasons, many contractors may find themselves needing to switch between their Limited Company and an Umbrella Company at short notice, while they challenge a client’s determination, look for a new contract or negotiate their fee to cover any take-home pay shortfall.