Briefing note provides some comfort for contractors

HMRC has published information about the reforms to off-payroll working rules due to apply to the private sector from 6 April 2020.

From this date large and medium-sized organisations will become responsible for assessing the correct employment status of the contractors they engage to work for them. If the rules apply the organisation that pays the individual’s own limited company will be responsible for deducting and paying the associated employment taxes and National Insurance to HMRC.

The department states it ‘will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour’.

The briefing covers the support HMRC has put in place to help businesses and other organisations. This includes one-to-one support for 2 000 of the UK’s biggest employers and direct communications to around 15 000 medium-sized businesses. This is supported by workshops guidance ...