HMRC Announce IR35 Rule Clarification

HMRC has confirmed in the past few days that the new Off Payroll Working rules will not be retrospective and changes to the operation of the off-payroll working rules will only apply to payments made for services provided on or after 6 April 2020.

 

As originally drafted the rules were to apply to payments made to contractors on and after 6 April 2020, irrespective of when the work was performed – which would mean that work performed in February and March 2020 would be drawn into the OPW rules if payment for those services was made after 6 April 2020.

 

Alongside this announcement, we are expecting the outcome of the ongoing Government review to be published later this month. But there remain no indications that HMRC intends to defer the new rules, despite renewed calls for a 12 month delay. So businesses still need to act quickly to ensure they are compliant under the new rules.

 

Please see our recent refresher blog regarding the Off Payroll Working rules for the Private Sector, coming into effect from 6th April 2020 below:

 

https://www.garbutt-elliott.co.uk/blog/reminder-off-payroll-working-rules-from-april-2020/