
Half of the contractors plan to leave clients in the next eight weeks due to changes to the IR35 ‘off-payroll' rules. The UK’s IR35 legislation ensures that contractors pay the same tax and National Insurance contributions as an equivalent employee. These changes will be explained in the blogNew IR35 changes will be implemented in April 2020 for private sector contractors that will transfer responsibility from contractors to large and medium companies to assess IR35.
Government Updates – February 2020
On 7th February, HMRC announced a significant change in the application of the changes to the off-payroll working rules. The new rules will now apply only to payments that are made for services that are provided on or after 6 April 2020.Here Are The IR35 Changes That Have Been Made
HMRC has clarified the application of the rules ahead of the Government’s review which is due to conclude in February.- The ongoing review of IR35 change implementation, which the government aims to conclude in mid-February 2020. This will determine if any further steps can be taken. This will separate review which will assess whether any additional support is needed to ensure that the self-employed, who are not within the scope of IR35 rules, are not impacted.
- As the Budget will not take place until 11 March 2020, the subsequent Finance Bill containing the legislation for these rules will only be published a little over three weeks before they are due to take effect.
- HMRC using the first 12 months to continue to educate, rather than seek to punish businesses. Who has not been able to get their house in order
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