HMRC

HMRC announces changes to off-payroll working rules

HM Treasury has announced that 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, ahead of the publication of the Government’s review.

The formal publication of a review into the implementation of changes to the off-payroll working rules is due to conclude in February.

The government released a statement which said it had “listened and taken action early” to give businesses certainty and more time to prepare to ensure the smooth and successful implementation of the reforms that come into force in April.

The rules, also known as IR35, 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

Nick Woodward, CEO and founder of ETZ Payments, said: “This clarification from HMRC helps businesses and workers plan ahead for the implementation of the rules in April. 

“The concern is that the confusion around the changes to the rules up to this date may mean some have buried their head in the sand rather than taking action.”

Chris Biggs, managing director of accountancy consultants Theta, added: “Many firms who employ consultants, especially large companies employing two, three or five thousand self-employed workers, acted quickly to become compliant which in some cases, has left many concerned that their past work could be subject to the new rules. 

“Fortunately, this announcement does provide more clarity for them, but more needs to be done to put the concerns of self-employed consultants to rest over the next two months.” 

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