HMRC announces change to the off-payroll working rules

[DolanContractorGroup]

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, HMRC has announced today ahead of the publication of the government’s review.

The formal publication of a review into the implementation of changes to the off-payroll working rules is due to conclude in February.

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.

The rules, also known as IR35, will now apply only to payments made for services provided on or after 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. It means organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020, supporting businesses as they prepare.

HMRC announces change to the off-payroll working rules - GOV.UK

[JohntheBike]

HMRC announces change to the off-payroll working rules - GOV.UK

some concession at least. This will alleviate the situation where contractors are not renewing after the end of February.

[northernladuk]

some concession at least. This will alleviate the situation where contractors are not renewing after the end of February.

Not sure I'd see this as a concession. Basic common sense would have been more my phrase.

[JohntheBike]

Not sure I'd see this as a concession. Basic common sense would have been more my phrase.

well, based on what you've said, this didn't happen in the public sector.

[ascender]

Its a bit late in the day surely? Everyone I know has basically had contracts terminated at the end of February and has had to either sign up for brolly/paye or find something else from 2nd of March. Nobody is going to back down on that for an extra month given the amount of paperwork and resource it would need.

[northernladuk]

well, based on what you've said, this didn't happen in the public sector.

It didn't no and caused a lot of confusion and hassle.

[LetterBox]

This gives a small number of clients their contractor resource for another 3 or 4 weeks, this gives a small number of contractors another 3 or 4 weeks to secure another role.

Being cynical, if I wanted to keep my contractors in the game as long as possible I'd send out comms today stating that we're now going to await the outcome of the IR35 review and budget on the 11th of March, seeing as how you are allowed to provide services under the current arrangement until the 6th of April, keep them hanging on and get whatever projects you can closed off or halted gracefully.

As a contractor, you have another 3 or 4 weeks to find another role, use the extra time wisely, at this point everyone should expect inside determinations.

[SimonMac]

Not sure I'd see this as a concession. Basic common sense would have been more my phrase.

This is the treasury we are talking about, common sense is a concession

[northernladuk]

This is the treasury we are talking about, common sense is a concession

Very good point well made.

[simes]

This gives a small number of clients their contractor resource for another 3 or 4 weeks, this gives a small number of contractors another 3 or 4 weeks to secure another role.

Being cynical, if I wanted to keep my contractors in the game as long as possible I'd send out comms today stating that we're now going to await the outcome of the IR35 review and budget on the 11th of March, seeing as how you are allowed to provide services under the current arrangement until the 6th of April, keep them hanging on and get whatever projects you can closed off or halted gracefully.

As a contractor, you have another 3 or 4 weeks to find another role, use the extra time wisely, at this point everyone should expect inside determinations.

Sorry to nitpick but aren't the two items, now in bold, a contradiction in terms?

Is it yet fair to say that the wider client estate has just thrown the towel in and, while not assessing at all - blanket or otherwise, blanket halted the use of contractors? This being only based on the greater majority of the news being one of towel throwing...