Education and support: off-payroll working changes

19 October 2020

HMRC has published a factsheet that signposts anybody impacted by the upcoming changes to the off-payroll working rules to the raft of information and guidance that is available online, to help them to prepare prior to April 2021.

The amendments were due to come into effect from April 2020, but in recognition of the turbulence created by coronavirus, they were delayed until the following year. The changes have been made to ensure that individuals, frequently referred to as contractors, who work like employees, but through their own company or other type of intermediary, pay the same income tax and National Insurance (NI) contributions as people who are directly employed.

The rules will affect:

  • Medium or large-sized non-public sector organisations, that engage contractors working through their own intermediary
  • An employment agency which supplies contractors who work through their own intermediary
  • A public authority – there are additional changes coming from April 2021
  • A contractor who provides services through their own limited company or other intermediary

The factsheet includes a table of all the different sources of information regarding the upcoming off-payroll working reforms. It confirms who the guidance is most relevant to, whether that be clients and fee-payers, tax agents or contractors, or, indeed, whether it is aimed at assisting all three.


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