Firms encouraged to prepared for new rules in the private sector

HMRC has published a four-point list of steps to help businesses prepare for changes to the off-payroll working rules for businesses in the private sector from April 2020.

Under the new rules, the responsibility for determining whether IR35 applies to an individual working through a personal service company will fall on the engaging company.

HMRC’s advises that companies should:

• look at their workforce, including those engaged through agencies and other intermediaries, to identify who is supplying their services through a personal service company;
• determine if the off-payroll rules apply for any contracts that will extend beyond April 2020;
• start talking to contractors about whether the off-payroll rules apply to their role; and
• put processes in place to determine if the off-payroll rules apply to future engagements.

This guidance has been published even though the consultation on reforming the off-payroll working rules in the private sector has yet to close. Comments on that document should be submitted to: offpayrollworking.intheprivatesectorconsultation@hmrc.gsi.gov.uk by 28 May.

HMRC guidance: tinyurl.com/hmrcir35gui15apr; Consultation document: tinyurl.com/opwrfr2020

Issue: 4693 / Categories: News