‘IR35’ status determination statements may remain valid
‘IR35’ status determination statements issued
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.
What does this mean?
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.
How can KPMG help?
KPMG has developed a suite of technology tools to support organisations in complying with the new rules, including:
- A tool to identify which of an organisation’s suppliers may comprise Personal Service Companies, including verification with data held at Companies House;
- An employment status determination tool tailored to addressing the role profiles that exist in the organisation; and
- A workflow tool so that the assessment process moves dynamically from determination, to review, to the issue of SDSs with a ‘state of play’ dashboard available for accredited users. The system also captures and stores relevant information for reference in case of a dispute or presentation to HMRC in the event of an enquiry, for example.
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 your usual KPMG contact, or email firstname.lastname@example.org.
- Off-payroll working reforms: draft debt transfer regulations published for consultation
- Off-payroll working reforms: review of implementation announced
- Off-payroll working reforms from April 2020 – HMRC publishes new and updated guidance
- Off-payroll working from April 2020 – getting ready for the new regime
© 2021 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.