HMRC publishes draft secondary legislation: off-payroll working rules from April 2020

23 January 2020

Ahead of the reforms to off-payroll working rules which will come into effect from 6 April 2020, HMRC has published draft Statutory Instruments for technical comment.

The secondary legislation can be located here and outlines the amendments that are being made to PAYE and NIC regulations. As widely discussed over recent months, the changes will shift the responsibility for operating IR35 rules from the worker’s Personal Service Company (PSC) to the medium or large-sized organisation they work for. It is hoped that this will improve compliance and is an extension of the rules that were implemented in public sector organisations back in April 2017.

The draft legislation discusses the government’s plans in relation to the transfer of debt obligations where liabilities cannot be collected from the deemed employer within a reasonable period. Amendments to PAYE and Social Security regulations are included to allow for the reporting of an off-payroll worker indicator on Real Time Information (RTI) returns.

The draft legislation is open for consultation until 19 February 2020 and comments should be sent to [email protected].

CIPP comment

Although HMRC has asked for feedback on the technical detail of both draft statutory instruments, the CIPP attends the IR35 forums, and would also be interested to hear any of your comments or experiences in relation to the topic. Please get in touch at [email protected].


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