Last week – the 22nd August 2019, to be exact - HMRC bulk-published and updated information about the off-payroll rules on its .gov.uk site. Overall, there were 11 pages of information released or amended. With other IR35 stories currently taking precedence (see the ongoing plight of 1,500 GSK contractors that received IR35 letters over the bank holiday), it’s important that these updates aren’t missed. See below for a full list of the pages published or amended, who they specifically apply to and a synopsis of the information.

New info: April 2020 changes to off-payroll working for intermediaries

Who it concerns: Contractors/Intermediaries

This information aims to help intermediaries ‘understand and prepare for changes to the off-payroll working rules (IR35)’. ‘Intermediaries’ are defined by HMRC as ‘a worker’s personal service company, but could also be a partnership, a managed service company, or another person.’ The page details who will decide the employment status of the contractor providing services via the PSC (or another intermediary) in question for both the private and public sector, who should get an employment status determination from their client, and the responsibilities of the intermediary towards the contractor after the changes come into effect.

Read the full page here.

New info: Fee-payer responsibilities under the off-payroll working rules

Who it concerns: Agencies/End Clients

This page highlights that you should ‘check if you’re the fee-payer and what your responsibilities are if the off-payroll working rules (IR35) apply’. ‘Fee-payers’ are defined by HMRC as ‘the organisation paying a worker’s intermediary’, ‘the lowest party in the labour supply chain’, and ‘the person paying the worker’s intermediary.’ The page details the circumstances under which the off-payroll rules apply in the public sector and the circumstances under which they’ll apply in the private sector after April 6th 2020. It also outlines who decides if the rules apply, how to check if you’re the fee-payer, the responsibilities of the fee-payer, and what to do if you or the contractor concerned disagree with a client’s employment status determination.

Read the full page here.

New info: Off-payroll working for agencies

Who it concerns: Agencies

This information aims to inform about ‘the off-payroll working rules (IR35) for agencies, when the changes to these rules apply and how the changes will affect you’. HMRC determines that the changes are set to affect you if, as an agency, you supply contractors to any public sector client, medium/large private sector client, or another agency who supplies a contractor for either of the above. The page goes on to detail who should determine a contractor’s employment status in both private and public sector circumstances, how to check if you’re the ‘fee-payer’, and your responsibilities if you are.

Read the full page here.

New info: April 2020 changes to off-payroll working for clients

Who it concerns: End Clients

This page aims to help you ‘understand and prepare for changes to the off-payroll working rules (IR35) if you’re a client receiving services from a worker through their intermediary’. HMRC defines the parameters of when IR35 will affect you as an end client in both the public and private sector, whether you can use the ‘simplified test’ or not depending on your annual turnover and other business-size specifics, when you need to start applying the rules in the private sector, what your employment status determination responsibilities are as the end client, how to tell if the role of ‘fee-payer’ also applies to you, and what to do if a contractor disagrees with your employment status determination.

Read the full page here.

New info: Understanding off-payroll working (IR35)

Who it concerns: Contractors/Intermediaries/Agencies/End Clients

This page provides overarching information on the ‘off-payroll working rules for clients, workers and their intermediaries’. HMRC details what the off-payroll working rules are, who will be affected by them, and when the rules apply for both the public and private sector.

Read the full page here.

New info: April 2020 changes to off-payroll working for clients

Who it concerns: End Clients

This information aims to help you ‘understand and prepare for changes to the off-payroll working rules (IR35) if you’re a client receiving services from a worker through their intermediary’. HMRC determines what organisations the off-payroll rules apply to in both the public and private sector, when the rules should come into effect, what your responsibilities as the end client – and, therefore, the employment status determiner – are, and the procedure you should follow if a contractor or agency disagrees with your employment status decision.

Read the full page here.

Updated info: Public sector off-payroll working for clients

Who it concerns: End Clients

This information looks at how to ‘find out how off-payroll rules (IR35) work in the public sector’. HMRC specifies ‘public authorities’ as the main public sector engagers of contractors, who are defined as ‘government departments, including their executive agencies, companies owned or controlled by the public sector, schools or universities, local authorities, parts of the NHS, UK Parliament, the National Assembly for Wales Commission, and the Northern Ireland Assembly Commission’. The page details what your IR35 responsibilities are as a public sector end-client, including your employment determination responsibilities and how income tax and NI payments work should you determine a contractor as inside IR35.

Read the full page here.

Updated info: Public sector off-payroll working for intermediaries

Who it concerns: Contractors/Intermediaries

This page looks at how to ‘find out about the off-payroll working rules (IR35) if you’re an intermediary and your worker provides services to a public sector client’. HMRC details when the end-client should be asked to determine the contractor’s employment status, what the fee-payer’s responsibilities are, and how to pay a contractor through an intermediary should income tax and NI payments be applicable.

Read the full page here.

Updated info: Prepare for changes to the off-payroll working rules (IR35)

Who it concerns: End Clients

This information aims to help end clients ‘prepare for changes to the off-payroll working rules (IR35)’. HMRC provides a 4-point list of steps that end clients should take when applying IR35 to their workforce, including deciding to appoint a specific IR35 officer within your organisation to make employment determinations.

Read the full page here.

Updated info: Public sector off-payroll working for intermediaries

Who it concerns: Contractors/Intermediaries

This page looks at how to ‘find out about the off-payroll working rules (IR35) if you’re an intermediary and your worker provides services to a public sector client’. HMRC details what information contractors need to provide to fee-payers if IR35 applies, what the fee-payer is responsible for paying, and what should be taken into consideration when paying a contractor through an intermediary if IR35 applies.

Read the full page here.

Updated info: How to calculate the deemed employment payment

Who it concerns: Agencies/End Clients

This information informs ‘how to calculate the deemed employment payment’. HMRC provides a link to a Deemed Employment Payment Calculator, as well as details a 9-step list on how to manually calculate the income tax and NI payment due should a contractor be found inside IR35.

Read the full page here.

Protect your IR35 position

For helpful hints and tips on maximising the chances of proving that you lie outside of the scope of IR35, explore our Knowledge Hub.

If you’re concerned about IR35, we offer a range of contract reviews with comprehensive advice on how to stay outside the legislation. We also offer IR35 Tax Investigation & Liabilities insurance (TILI), which includes tribunal defence from our Head of Tax Andy Vessey ATTex-Qdos tax veteran and IR35 specialist - as part of the policy. Andy is also available for IR35 training, conferences and specialist commentary on the off-payroll rules. Please get in touch.

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