HMRC announces change to the off-payroll working rules
10 February 2020
HMRC have announced a change to the off-payroll working rule legislation ahead of implementation on 6 April 2020.
HMRC have stated that:
- The off-payroll working rules will only apply to payments made for services provided on or after 6 April 2020.
- This change will mean that organisations will only need to determine whether the rules apply for contracts that are expected to continue beyond 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.
Aspire Comment
HMRC are suggesting that they are doing their utmost to ensure the smoothest and easiest implementation of the rules ahead of 6 April. Nevertheless, unhelpful guidance and complex legislation is turning this into a headache for all those involved in PSC supply chains.
HMRC claim to be making businesses aware of this announcement through updated guidance and in its “ongoing education and support products”. These updates are not easily found and are buried within a huge volume of guidance in the Employment Status Manual. It’s no wonder that dread and confusion still loom!
If you wish to discuss the off-working rules legislation, please get in touch on 0121 445 6178 to speak to an advisor.