HMRC
announces off-payroll changes will not be applied retrospectively
HMRC has announced that changes
to the off-payroll rules will only apply to payments made for services provided
on or after 6 April 2020.
The announcement comes ahead
of the publication of the government's review into the expansion of the
off-payroll rules into the private sector.
In 2017,
HMRC introduced new off-payroll rules to the public sector, which saw some
contractors' net income cut significantly. HMRC also shifted the responsibility
for compliance from the individual contractor to a public body or recruitment
agency.
From 6 April
2020, new tax rules will use the 2017 changes as a starting point for the extension
to medium and large organisations in the private sector.
In a statement, a
spokesperson for HMRC said: '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.'
HMRC confirmed that the
rules 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.
We are
always on hand to answer any questions you may have about off-payroll working -
simply contact us for more information.