Change to April’s Off-Payroll Working Rules Announced by HMRC

Changes to the rules for off-payroll working in the private sector will now only apply to payments made for services provided on or after April 6th 2020. The rules had applied to any payments made on or after April 6th, regardless of when the services were actually carried out.

So, in an effort to give firms more time to prepare, HMRC’s change in stance means businesses only need to determine whether new IR35 rules apply to contracts continuing beyond April 6th.

HMRC made the announcement on Friday in anticipation of the Government’s review into the implementation of IR35 changes. That review is due for publication later this month.

For all things IR35, check out our dedicated Hub. Or, to find out more about how to prepare your finances for the incoming legislation, click here.

Why have HMRC changed their stance?

In a statement on their website, HMRC said: “A common issue raised over the course of the review has been businesses’ concerns over what payments the rules apply to and from when.”

“The Government has 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.”

“This is set out in updated guidance in the Employment Status Manual.”

“At Danbro, we are fully prepared”

Speaking after Friday’s announcement Damian Broughton MBE, Danbro’s Executive Chairman, said:

“There’s been a debate in some circles about whether the proposed legislation would get implemented. Particularly given the announcement of the House of Lords’ IR35 review a few days ago.”

“[Friday’s] announcement is another indication that despite multiple voices of caution about the implementation of the IR35 changes, the Government is still ploughing ahead.”

“There may be some tweaks, as evidenced here, but the legislation is still set to become law on April 6th.”

“At Danbro, we are fully prepared. The vast majority of our agency partners are also prepared. So, if you have any questions regarding your personal circumstances, please do not hesitate to get in touch sooner rather than later.”

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