HMRC has confirmed that Status Determination Statements (SDSs) issued prior to 6 April will be valid under the new rules.
In an update to its guidance published on 30 January 2020, HMRC has confirmed that SDSs issued prior to 6 April will remain valid under the new ‘IR35’ rules.
However, the updated guidance notes state that if the working practices of the engagement change, or a new contract is negotiated, the application of the ‘IR35’ rules to the engagement should be reassessed.
Given that many businesses are already issuing SDSs in advance of 6 April, this is a welcome development.
Many businesses that have delayed should now have confidence to start issuing SDSs prior to April 2020 in order to ease the transition to the new regime.
In turn, this should enable any subsequent SDS appeals to be dealt with in a timely manner.
KPMG has developed a suite of technology tools to support organisations 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 changes in April 2020, please get in touch with Matthew Hunnybun, Partner and Head of People Services, KPMG in the UK, your usual KPMG contact, or email firstname.lastname@example.org.
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