Off-Payroll Working – IR35 Update

IR35 April 2020

HMRC has now published draft secondary legislation for the off-payroll working rules that are due to come into force in April this year.

In 2017, HMRC introduced new off-payroll rules to the public sector, which saw some contractors’ net income cut significantly. HMRC also shifted the responsibility for compliance from individual contractors to public bodies or recruitment agencies.

From 6 April 2020, the new tax rules will use the 2017 changes as a starting point for the extension to medium and large organisations in the private sector. These reforms will shift the responsibility for assessing employment status to the medium and large organisations engaging the individual worker via an intermediary.

The new draft legislation is open for consultation until 19 February 2020.

Jesse Norman, the Financial Secretary to the Treasury, said:

‘We recognise that concerns have been raised about the forthcoming reforms to the off-payroll working rules. The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible.’

If you think these changes might affect you, please feel free to contact us or have a look at our other articles below!

Chancellor Commits to Review of IR35

Consultation on Extension of IR35 Rules

Christa Ackroyd Loses IR35 Appeal

Internet link: GOV.UK consultations

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