Off payroll working in the private sector – HMRC support

The off-payroll working rules which currently apply in the public sector are due to be extended to medium and large organisations in the private sector from April 2020.  

Under these rules, the responsibility for determining whether an engagement falls within the off-payroll rules (often referred to as IR35) will move from a worker’s personal service company (PSC) to the client (the business which requires the worker’s services). The party which pays the PSC - which may be the client, or an agency depending on the commercial arrangements - will then be required to operate PAYE and NICs as appropriate. 

HMRC have informed us that they are writing directly to those likely to be impacted by these rules. These letters will provide information and signpost resources for businesses and their contractors, including the link to sign up for one of the webinars HMRC are running over the next two months.

HMRC have also published a factsheet for contractors to explain how they might be affected, and what they might need to do before April 2020.

Further guidance on the April 2020 changes can be found on GOV.UK.

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