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HMRC announce IR35 changes

HMRC confirmed on 8th February 2020 that the IR35 changes will only apply to work carried out on or after 6 April 2020.  This will enable businesses to continue to pay impacted contractors for work carried out prior to 6th April 2020 without PAYE deduction. The original intention of HMRC was to make the new rules effective for all payments made on or after 6th April 2020, regardless of when the work was done.  This relaxation should help with the implementation of the rules and avoid a spike in invoicing and chasing for payments had the original proposals been implemented.  This also suggests that HMRC will be pragmatic in their approach to compliance in the first few weeks of the legislation change and continue with their education and preparation sessions with businesses to maximise compliance with the changes in legislation after the first few weeks from 6th April.

Details of HMRC’s release are available here if you wish to familiarise yourself with the detail: HMRC off-payroll working rules.

HMRC Guidance update

We are also aware that HMRC have refreshed their off-payroll working guidance in general. This guidance (which is still referenced as “draft”) remains consistent with the advice and approach being taken by Brookson in assisting all parties in the supply chain to understand and implement their response to these changes, so there are no other changes/surprises (aside from that noted above) for you to be aware of.

If you would like to review the detail, click the following link to read the updated guidance.

 


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