[UK] HMRC announces change to the off-payroll working rules

On the 7th of February and ahead of the publication of the government’s review of the off-payroll working rules from the 6th of April 2020, HMRC have announced a small but significant change.

Previously, the reforms would have meant that any payment made on or after the 6^th of April 2020 would have potentially fallen under the new rules.  The announcement confirms that the new off-payroll rules will only apply to payments made for services on or after the 6^th of April 2020.  To confirm this, we would like to put this a slightly different way:

• Before – payments made on or after the 6^th of April 2020 fall under the off-payroll rules
• NOW – services provided on or after the 6^th of April fall under the off-payroll rules

This announcement is said to give employers more time to prepare for the reforms.  That is certainly the case, if only for a few weeks.  Now, employers only have to look at invoices provided for services on or after the start of the tax year 2020/21.

Global Payroll Association Comment

We await the full review which is due to be published towards the end of February.  However we do not expect any significant changes and urge employers / engagers to read the guidance that is on gov.uk.

Yet the above change is a significant one and is reflected in the draft guidance in HMRC’s Employment Status Manual.

On the 7th of February and ahead of the publication of the government’s review of the off-payroll working rules from the 6th of April 2020, HMRC have announced a small but significant change.

Previously, the reforms would have meant that any payment made on or after the 6^th of April 2020 would have potentially fallen under the new rules.  The announcement confirms that the new off-payroll rules will only apply to payments made for services on or after the 6^th of April 2020.  To confirm this, we would like to put this a slightly different way:

• Before – payments made on or after the 6^th of April 2020 fall under the off-payroll rules
• NOW – services provided on or after the 6^th of April fall under the off-payroll rules

This announcement is said to give employers more time to prepare for the reforms.  That is certainly the case, if only for a few weeks.  Now, employers only have to look at invoices provided for services on or after the start of the tax year 2020/21.

Global Payroll Association Comment

We await the full review which is due to be published towards the end of February.  However we do not expect any significant changes and urge employers / engagers to read the guidance that is on gov.uk.

Yet the above change is a significant one and is reflected in the draft guidance in HMRC’s Employment Status Manual.