Changes to the off-payroll reforms
Key change announced
As part of a promised review into the private sector reforms to the operation of the off-payroll working rules, the government has now stated that the reforms will only apply to payments made for services provided on or after 6 April 2020, giving you more time to prepare.
Previously, the rules would have applied to any payments you made on or after 6 April 2020, regardless of when the services were performed for you (see Follow up ).
Pro advice. If a payment is made for services which were provided both before and after 6 April 2020, you must make a “just and reasonable apportionment” to identify that part which is for services provided on or after 6 April 2020.
Employment Status Manual
HMRC has also published, in draft, some additions to its Employment Status Manual confirming how the new rules will operate (see Follow up ).
Pro advice. The formal outcome of the review into the private sector reforms is due to be published by the end of February 2020. However, any changes are likely to simply enable a smooth implementation of the reforms, rather than accommodate any delay or major changes to the reforms.
Government press release
HMRC Employment Status Manual
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