HMRC has today published the findings of their review into changes to the new off-payroll working rules coming into effect on the 6th April 2020.
The Government plans to make a number of changes, which will aim to address concerns over the reform and enhance the implementation process.
Some of the changes being made to the legislation include:
- Taking a light-touch approach to penalties, meaning that businesses will not have to pay penalties for inaccuracies in the first year, except in cases of deliberate non-compliance.
- Detailed guidance on the reforms published by HMRC. You can read our information for contractors here, which provides a comprehensive guide to the changes.
- Ramping up communication efforts with webinars and guides to help contractors understand the rules. This will complement the significant work already in place to help businesses prepare.
- Reiterating that new information from the changes will not be used to open investigations into Personal Service Companies (PSC) for past tax years, unless fraud or criminal behaviour is suspected.
- Assuring that the Government will introduce a legal obligation on organisations to respond to requests for information about their size from agencies or workers, to make it clearer who is responsible for determining a worker’s tax status.