Off-payroll working (IR35) ─ changes to the working rules from 6 April 2020

From April 2020 the rules for engaging individuals through personal service companies are changing. The responsibility for determining whether the off-payroll working rules (sometimes known as IR35) apply will move to the organisation receiving an individual’s services.

The Employment Status Manual is intended to provide guidance on issues relating to the employment status of individuals.  CLICK ON THIS LINK TO THE MANUAL

How to prepare:

  • Look at your current workforce (including those engaged through agencies and other intermediaries) to identify those individuals who are supplying their services through personal service companies.

  • Determine if the off-payroll rules apply for any contracts that will extend beyond April 2020. You can use HMRC’s Check Employment Status for Tax service to do this.

  • Start talking to your contractors about whether the off-payroll rules apply to their role.

  • Put processes in place to determine if the off-payroll rules apply to future engagements. These might include who in your organisation should make a determination and how payments will be made to contractors within the off-payroll rules.

Ed.

Employment Status, HMRC, IR35, PAYE, self-employed, Tax

Comment

  • As a freelance Construction Site Manager, it was only a few years ago I was told that I would no longer be allowed to be paid through agencies as CIS if I was self employed and I would have to register as a Limited Company if I wanted to continue being paid under CIS. I have now had a couple of agencies ring to say they are not going to pay Limited Companies after April and that I must go back to being “Self Employed” and use my own UTR. I work for multiple Companies through half a dozen different agencies so fail to see how I am now a “Hidden Employee” Are all Site managers who set up, at considerable expense, a few years ago now going to have go back to self employed status, a status as a Company Director HMRC already deem me to be by the taxation through “Self Assessment”. Am I the only one who is now totally lost on where I am and how I am supposed to continue earning a living in the Construction Sector.

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