• HMRC has confirmed its previous commitment that information resulting from changes to the rules will not be used in order to open new investigations into Personal Service Companies for tax years prior to 6 April 2020, unless there is sufficient reason to suspect criminal behaviour or fraud • HMRC has also reiterated its previous announcement that the rules will only be applicable to services carried out from 6 April 2020, and not to any payments made on or after 6 April 2020. Therefore, if, for example, services were provided on 30 March 2020 but not paid until 8 April 2020, the new rules would not apply. If the services were provided on 8 April 2020, then the new rules would apply • There will be a legal obligation for clients to respond to a request for information regarding their size from the agency or worker, and legislation will be updated to address concerns raised over rules as they apply to off- shore companies There are already a range of educational documents available from HMRC, including comprehensive guidance on the reforms. There is also a factsheet to support contractors, and communications will be increased in the final weeks before the reforms are to be implemented. The government states that it will continue to listen to feedback from stakeholders, and to evaluate and monitor the operation of the rules.
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HMRC publishes communication resources relating to off-payroll working rules 9 March 2020
HMRC has published a communication pack that provides information to be provided to members, clients and customers in relation to the off-payroll reforms that will come into effect from 6 April 2020.
As part of its response to the review into the implementation of the reforms, HMRC pledged to continue to offer education and support to assist customers in applying the new rules. The stakeholder pack provided certainly gives substantial educational information, in a variety of forms, and it is advisable for businesses and contractors and indeed, anyone affected by the reforms, to familiarise themselves with all of the documents provided. The material frequently reminds individuals to ensure that they protect themselves by steering clear of tax avoidance schemes. The resounding advice given is that if something looks too good to be true, then it probably is, so in scenarios where offers that claim to ensure workers are not affected by off-payroll working rules are made, or where it is alleged that take home pay can be increased in any way, caution should most definitely be exercised.
The materials in the pack are as follows:
• Know the facts – top tips to be shared with contractors • A contractor flowchart – decision making guide for contractors • A sample news article – information about the key changes which can be included in magazines, newsletters or websites • A sample email – information about the changes that can be issued to members • Leaflet for contractors – this can be printed for contractors • Case studies – example scenarios to be included in communications • Short comparative case study – case study comparing the perspectives of a contractor and a client • Social media messages – text to be used on social media channels
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IR35 reforms delayed for 12 months amidst coronavirus outbreak 19 March 2020
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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