Guidance on extension of off-payroll working rules to private sector

Sep 16, 2019

HMRC has published the long awaited guidance on the extension of the off-payroll working rules to the private sector from April 2020. The guidance sits alongside the draft legislation published in July. However, the promised enhancements to the Check Employment Status Tool (known as CEST) have yet to be rolled out.

The guidance available is as follows:

In the September 2019 edition of tax.point, the UK feature article takes a closer look at these new rules. Key advice to prepare for these changes is set out.

End users in the private sector must:

  • decide the employment status of each worker contracted through a Personal Service Company or an intermediary;
  • pass the decision made and the reasons for it to the worker and the person or organisation contracted with;
  • keep records of those decisions and fees paid;
  • have processes in place to deal with any disputes; and
  • respond to any disagreements received from the contractor within 45 days