HMRC announces a change to the off-payroll working rules

As part of a review into changes to the operation of the off-payroll working rules (IR35), HMRC has announced that the rules will only apply 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.

This means that organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020.

Public sector organisations already applying the off-payroll working rules will not be affected by this change.

Full details of the announcement can be found here.

The off-payroll working rules have been in place since 2000.  In 2017 the government reformed the operation of the rules in the public sector and is extending this to all medium and large organisations from April 2020.  This will shift responsibility for operating the IR35 rules to the organisation that engages the worker.  Further details and guidance on how to prepare for the changes can be found here.

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