On Thursday last week, 27th February, the Government confirmed that it will go ahead as planned with the extension of off-payroll rules into the private sector this April.
This confirmation came with the publishing of a report from the Treasury about their review of the private sector implementation.
They have, however, made some changes to address concerns and help make the implementation be a smoother process for all involved.
These changes are:
- No penalties for off-payroll errors in the first year - Except in cases where there was deliberate non-compliance.
- The HMRC re-confirmed that information resulting from changes to the rules will not be used to make new cases against PSCs for tax years before 6th April 2020 - Except in cases where there is suspected fraud or criminal activity.
- Clients will be legally required to respond to requests for information about their size from agencies or workers.
- The Government are going to update the legislation to address concerns about how the rules apply to offshore companies.
These changes should help clients, agencies and workers transition more simply into the new IR35 rules.
Are you prepared for the upcoming changes? How are you preparing for IR35?