Changes to IR35 rules from April 2020

HMRC has provided a list of how to prepare for the changes of the off-payroll working rules starting from 6 April 2020 that will help to guide medium sized and large business within the private sector. The changes will make the involved organisations in control of taking decision if IR35 applies to services they receive from individuals working within a limited company.

According to HMRC, from April 2020 the rules for engaging individuals through personal service companies (PSCs) are changing. The responsibility for determining whether the off-payroll working rules apply will move to the organisation receiving an individual’s services.
This advice will help your organisation prepare before the changes come in.


How to prepare:

  • Look at your current workforce (including those engaged through agencies and other intermediaries) to identify those individuals who are supplying their services through PSCs.
  • Determine if the off-payroll rules apply for any contracts that will extend beyond April 2020. You can use HMRC’s Check Employment Status for Tax service to do this.
  • Start talking to your contractors about whether the off-payroll rules apply to their role.
  • Put processes in place to determine if the off-payroll rules apply to future engagements. These might include who in your organisation should make a determination and how payments will be made to contractors within the off-payroll rules.