IR35 Changes from April 2025 – What You Need to Know
IR35 changes April 2025 will affect contractors, freelancers, and businesses hiring through limited companies. It’s important to understand what these changes mean for you.
At Khoob Accountancy, your trusted French-speaking accountants in London, we help you stay on the right side of tax rules and save money.
Understanding IR35 Changes April 2025
With IR35 changes April 2025, more companies are now classed as small, shifting tax responsibilities back to contractors.
What is IR35?
IR35, also called off-payroll working rules, apply when someone works through a personal service company (PSC) but would be seen as an employee if hired directly.
The company paying the PSC (called the fee-payer) must take tax and National Insurance out and send it to HMRC.
Who is Affected?
- Contractors using their own limited companies
- Medium and large businesses hiring through companies
- Public sector groups
- Accountants and payroll staff
Our team at Khoob Accountancy gives clear advice on your tax position.
IR35 and Small Businesses
If the client is a small company, IR35 does not apply to them. The contractor’s own company must deal with tax and National Insurance.
From 6 April 2025, a company is classed as ‘small’ if it meets at least two of these:
- Turnover: £15 million or less
- Balance sheet: £7.5 million or less
- 50 or fewer staff
These new limits mean more companies will now be ‘small’ and won’t need to follow IR35.
Use the CEST Tool
HMRC has a free tool called CEST (Check Employment Status for Tax). It helps check if IR35 applies.
Use it here: CEST Tool.
We at Khoob Accountancy can help you review the results and stay safe from risks.
What’s New from April 2025?
- More clients will now count as ‘small’
- Contractors must handle their own tax again
- Clients now classed as ‘small’ won’t apply IR35
- Contractors should review each job again
If you’re not sure if your client is now ‘small’, we can check that for you.
Contractor Duties Under IR35
If your client is small, you must:
- Decide if IR35 applies
- Work out your salary under IR35
- Pay tax and National Insurance
We offer support with payroll, tax, and more for contractors across the UK.
What to Do Next?
Contractors should check their client list and see who now counts as ‘small’.
Businesses should check if the new rules apply to them from April 2025.
Why Choose Khoob Accountancy?
- Experts in small and medium business tax
- French-speaking accountants
- Trusted advisors for London businesses
- Skilled in IR35 and payroll
If you’re looking for an accountant or want to change, we make it easy to work with us online.
Get in Touch
Contact Khoob Accountancy today for help with IR35, payroll, and tax planning.
We serve clients in London, Kensington, Barnet and beyond.
