March 17, 2020 Update: Government have announced a delay in IR35 Off – Payroll reform to April 2021.
HMRC made a significant announcement on the 7th February 2020 regarding the operation of the off-payroll working rules (IR35), which gives businesses more time to prepare.
After concerns were raised, HMRC have clarified the application of new IR35 rules ahead of the publication of the Government’s review, due to conclude in February.
New IR35 rules will now apply ‘only to payments made for services provided on or after 6 April 2020‘. Previously, the rules would have applied to any payments made on or after 6 April 2020, regardless of when the services were carried out or invoices raised. It means organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020.
This will give businesses more clarity over the rules and more time to prepare for the reforms that come into force in April.
For more information read the full HMRC Press Release
There’s more on how to prepare for IR35 in this blog post or you can download our IR35 Off-Payroll Reform Guide, and if you’d like to discuss this further, please contact Marie Pegram on 01462 687333 or by email firstname.lastname@example.org.
UHY Hacker Young are recruitment sector specialists and provide expert advice on accounting, finance, taxation and business growth. We understand recruitment and can support you through the ever-changing landscape of this fast-paced industry. With IR35 changes around the corner we can help you build a robust system to tackle this challenge, provide payroll support and review your existing contracts with assistance from our network of other recruitment specialists.