Changes to IR35 Published by HMRC

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.

You can watch our IR35 information event video here

If you are a contractor who will be affected by the introduction of IR35, contact CK Group to see how we can help you

IR35 legislation