Off-Payroll working rules (IR35) – are you prepared?

Off-Payroll Working Rules (IR35): education and support to help prepare for April 2021 changes

Medium or large-sized non-public sector organisations and contractors need to start to prepare for the changes to the off-payroll working rules. These changes were legislated for in the recent Finance Act and will come into effect on 6th April 2021.

HMRC recognise that businesses are facing difficult challenges due to COVID19, which is why they are providing information and support now, more than five months in advance, to ensure customers have time to prepare for the changes when suitable for them. They are also working with trade bodies and representative groups of affected sectors to help organisations prepare for the reform and to highlight our available support.

This support includes: publishing technical guidance and enhanced additional resources to support contractors, a series of webinars over coming months, and workshops and 1-2-1 calls for some of our customers. On GOV.UK you will also find materials we’re producing to help support representative groups in updating their members.

Many contractors and organisations have already begun to prepare, and around 3,000 have attended the three webinars HMRC have delivered during October 2020.

You may be aware HMRC also regularly discuss their work to ensure the successful implementation of the changes with the IR35 Forum. This includes taxpayer representatives and professional advisers with expert knowledge and experience of how the legislation operates in practice and how it affects key groups.

Further information can be found on GOV.UK:

Opinion

Off-payroll working, deemed employment, IR35, Contractors – Business need to prepare. Originally intended to apply from April 2020, COVID-19 brought in a one year reprieve, however, the changes for April 2021 are now part of UK law.

Businesses, employers, HR, Finance and payroll all need to prepare for the change where a contingent contractor workforce operating via intermediaries is in place.

Process of status testing, notification, appeal handling and record keep are the bulk of the requirements, these are not payroll activities. And the accounting for tax and NICs has changed with new reporting on RTI FPS required under the off-payroll worker indication alongside employee reporting.

The introduction is now less than 5 months away. Are you prepared? Do you need help?

PAYadvice.UK 7/11/2020

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