HMRC announces change to the off-payroll working rules, ahead of the 6 April 2020 implementation date

10 February 2020

HMRC has announced that, as part of its review into the changes to the operation of the off-payroll working rules, the rules will now only be applicable to payments made for services provided on or after 6 April 2020, as opposed to any payments made on or after 6 April 2020.

The previous rules would have applied to payments made on or after 6 April 2020, regardless of when the services were provided. This means that determinations by medium and large organisations are only required on contracts that are due to continue past 6 April 2020.

These changes have been communicated to the public prior to the publication of the findings of the Government’s review to show that the concerns of businesses in relation to what payment the rules apply to, and from when have been considered. The early disclosure was intended to give businesses more time to prepare to enable successful implementation of the reforms and to provide more clarity on the issue.

HMRC will be communicating the changes to businesses via updated guidance and will continue to deliver education and support products to aid understanding. Individuals who have already attended webinars or one-to-one engagements will be written to, to confirm the changes. HMRC has also stated that this change will have no effect on public sector organisations who are already operating off-payroll working rules.


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