HMRC has published new and updated guidance to support implementation of the reformed off-payroll working rules from April 2020.
HMRC’s guidance follows the publication over the summer of draft legislation and supporting documentation by the UK government.
It sets out how businesses should account for tax and NIC on those engagements that fall within the scope of the rules, as well as how the reforms will affect large and medium-sized companies in the private and third sectors.
The links to the new and updates guidance are below:
Whilst HMRC guidance on the new rules is to be welcomed, it is fair to say that more detailed guidance is still needed and we hope this will be available at the earliest opportunity to give businesses time to comply.
Alongside this guidance, we understand that HMRC is continuing to work on enhancements to the Check Employment Status for Tax (‘CEST’) tool and have committed to release an updated version ahead of April 2020. However, we think it is important the updated version is released as soon as possible as many businesses will be aiming to complete the bulk of their assessments by the end of Q4 this year.
HMRC has begun to contact businesses affected by the upcoming changes with a view to arranging meetings to discuss what steps they are taking or plan to take, ahead of April 2020.
With this in mind, organisations should work to identify workers affected by the new rules and assess the impact on their contingent labour arrangements, including the implications for current arrangements with contractors and agencies.
Once current workers have been identified, robust processes will need to be introduced to determine their status under IR35 and manage information flows in the labour supply chain.
As part of its communication campaign HMRC is holding a webinar on Friday 20 September to provide stakeholders with an update to the off-payroll working rules. You can register for the webinar here.
KPMG has developed a suite of technology tools to support clients in complying with the new rules, including:
Should you wish to discuss the new HMRC guidance or explore how KPMG can help you prepare for the April 2020 changes, please get in touch with your KPMG contact.
The government has published its final proposals for reforming the off-payroll working rules. What should you do now?
HMRC’s consultation on off-payroll working closed on 28 May – read our insights on what organisations should be doing now.
The Government’s consultation on off-payroll working runs until 28 May 2019 – what does the proposed new regime look like?
Off-payroll working in the private sector: KPMG’s consultation response
KPMG has submitted its views on HMRC’s consultation on off-payroll working in the private sector.
Consultation on off-payroll working in the private sector launched
The Government’s long awaited consultation on off-payroll working in the private sector was launched on 18 May.
HMRC has now started to review compliance with the new IR35 rules.
Autumn Budget 2017: Off-payroll workers in the private sector
The Government has announced its intention to consult on the extension to the private sector of the IR35 reforms, introduced in the public sector earlier this year.
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