IR35 Update (August 13th 2020)

Off-payroll working rules (IR35)

The off-payroll working rules (IR35) legislation for changes to non-public sector organisations is included in Finance Act 2020, which has now received Royal Assent. The reform will take effect from 6 April 2021, as previously announced.

You should prepare for the reform taking effect and many organisations have already begun doing so. HMRC will re-launch its package of customer education and support later this year.

The Check Employment Status Tax tool (CEST) is already available for organisations and contractors to consider the appropriate employment status for tax for contracts running beyond 6 April 2021. HMRC will stand by the results given by the CEST tool, provided it is used in accordance with HMRCr guidance and the information entered is accurate, and remains accurate.

This is regardless of when the tool is used ahead of April 2021, and means you can already use the tool for engagements that start in April 2021 onwards.

HMRC will continue to refine and improve the support available ahead of April 2021 based upon customer feedback, but any preparation done now will remain valid for April 2021.

If you think you may be affected by this change and need advice please ring PWA on 01223-830020.