HMRC announces change to the off-payroll working rules

[Lance]

+1 - anything beyond complete abolition doesn't resolve the current slow motion train crash - most companies already suffering pain won't delay it just get on with it now.

And I don't think complete abolition would fix things easily, a lot of those blanket bans are here to stay as foreign head offices aren't going to take the risk.

+2

not enough time between budget and April 6th for any changes other than remove it entirely. Which they won't do. Not with a majority of 80.

Time to lube up !

[eatenrifles]

There's been a couple of articles with statements that muddy the waters and create more confusion (perhaps just what HMRC wants):

HMRC softens tax rule changes for freelancers following 'contractor chaos'

Changes to off-payroll working tax laws will now only apply to contracts that start after the new rules come into force on April 6, HM Revenue & Customs (HMRC) has announced.

IR35 rules for private sector will not be retrospective | Accountancy Daily

The government has confirmed that the rules will not be retrospective and 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, and will not be applied to contract work which is ongoing, for example a six-month contract which started in December 2019.

Both read like you can start a new 12-month contract in March 2020 and you're home free until March 2021 at the earliest. I can understand The Telegraph perhaps not having a clear handle on these things, but it seems completely remiss that Accountancy Daily is peddling the same misinformation.

The HMRC guidance seems very clear on the matter, even to a layman like me.

[Lance]

There's been a couple of articles with statements that muddy the waters and create more confusion (perhaps just what HMRC wants):

HMRC softens tax rule changes for freelancers following 'contractor chaos'


IR35 rules for private sector will not be retrospective | Accountancy Daily


Both read like you can start a new 12-month contract in March 2020 and you're home free until March 2021 at the earliest. I can understand The Telegraph perhaps not having a clear handle on these things, but it seems completely remiss that Accountancy Daily is peddling the same misinformation.

The HMRC guidance seems very clear on the matter, even to a layman like me.

lazy journalism..... Who'd have thought?

[ascender]

There's been a couple of articles with statements that muddy the waters and create more confusion (perhaps just what HMRC wants):

HMRC softens tax rule changes for freelancers following 'contractor chaos'


IR35 rules for private sector will not be retrospective | Accountancy Daily


Both read like you can start a new 12-month contract in March 2020 and you're home free until March 2021 at the earliest. I can understand The Telegraph perhaps not having a clear handle on these things, but it seems completely remiss that Accountancy Daily is peddling the same misinformation.

The HMRC guidance seems very clear on the matter, even to a layman like me.

That's nuts, but nobody contracting today will just take what they read online as verbatim without checking with their accountant right?

[eatenrifles]

That's nuts, but nobody contracting today will just take what they read online as verbatim without checking with their accountant right?

With any idiot-proof system, there always emerges the existence of a better idiot.

[northernladuk]

With any idiot-proof system, there always emerges the existence of a better idiot.

Usually found on here.

[jamesbrown]

lazy journalism..... Who'd have thought?

Precisely. Nothing more than that. The Telegraph (and most papers other than the FT) are pretty crap about reporting on technical legislation or, really, anything that requires more than a noddy level of reading comprehension.

[ComplianceLady]

I think this change is actually more impactful than it is being perceived as. We (Agency) were working through every contract - bearing in mind each contract has a different notice and pay period to work out when we had to be sorted by. We'd set a deadline of 28th Feb but were dealing with tons of special cases, we were working out how to ensure timesheets were paid prior and what legal rights we had if we had a valid timesheet after but the rate was based on outside and the SDS was now inside and so on and so forth.

This change has meant the deadline is the same for everyone, no issues with early payroll, outstanding timesheets. The only issue I can foresee (other than those that come with the legislation regardless of implementation) are the capacity of umbrellas if last minute SDS come in and lots of contractors want to switch.

The timing is the most common conversation I was having for the past month or so, it's clear that it's been heard by HMRC and it made me wonder if perhaps there may be something from the review - not a wholesale delay but tinkering around the edges.

[JohntheBike]

I think this change is actually more impactful than it is being perceived as. We (Agency) were working through every contract - bearing in mind each contract has a different notice and pay period to work out when we had to be sorted by. We'd set a deadline of 28th Feb but were dealing with tons of special cases, we were working out how to ensure timesheets were paid prior and what legal rights we had if we had a valid timesheet after but the rate was based on outside and the SDS was now inside and so on and so forth.

This change has meant the deadline is the same for everyone, no issues with early payroll, outstanding timesheets. The only issue I can foresee (other than those that come with the legislation regardless of implementation) are the capacity of umbrellas if last minute SDS come in and lots of contractors want to switch.

The timing is the most common conversation I was having for the past month or so, it's clear that it's been heard by HMRC and it made me wonder if perhaps there may be something from the review - not a wholesale delay but tinkering around the edges.

what is your perception of what will happen about contracts which continue after April and which started prior to April? Is there any substance in the report that these contracts won't be subject to the new rules?

[ContractorBanking]

There's been a couple of articles with statements that muddy the waters and create more confusion (perhaps just what HMRC wants):

HMRC softens tax rule changes for freelancers following 'contractor chaos'


IR35 rules for private sector will not be retrospective | Accountancy Daily


Both read like you can start a new 12-month contract in March 2020 and you're home free until March 2021 at the earliest. I can understand The Telegraph perhaps not having a clear handle on these things, but it seems completely remiss that Accountancy Daily is peddling the same misinformation.

The HMRC guidance seems very clear on the matter, even to a layman like me.

Just goes to show, should never ask your accountant!

The best advice is from the knowledgeable folk on these forums.