IR35 changes are just a month away – are you ready?

Mar 01, 2021

As we approach the implementation of the off-payroll working rules in the private sector next month from 6 April 2021, delayed from 6 April 2020 due to the pandemic, HMRC has written to us with an update on the ongoing work it is undertaking which is designed to help businesses and individuals prepare for the changes.  

“We're keen to continue supporting you and your industry in preparing for the reform, and would be happy to facilitate any discussions or briefings which might benefit your networks. If there are particular technical or practical aspects of the reform on which you think we might provide additional support, please let us know.  

Many businesses have already undertaken significant preparations to ensure they are ready for the reform, and HMRC is providing ongoing support for affected businesses and individuals by delivering an extensive programme of work to achieve that. 

  • We are continuing with our programme of webinars for businesses and individuals. Within this, we’ve followed stakeholder feedback on areas where additional information might be needed and developed topic-based sessions. 
  • We are running sector-specific workshops for those who might benefit from more detailed conversations.  
  • We have updated and improved our technical guidance.
  • We have produced factsheets to help customers understand and prepare for the changes. 
  • We are commencing a programme of social media work to boost awareness of the reform and the education and support offer we have put in place. 

We are grateful for your assistance in in helping us raise awareness of our education and support offer in front of the businesses and individuals by disseminating them via your channels. Thank you for your support in this, especially given the particular pressures facing us all at the moment. We hope to continue working with you in this way. 

Looking forward, we are considering what education and support may be required from April as the reform beds in, and how the impact of the reform will be monitored. We are also planning to publish our compliance strategy in the near future.  

As always, we welcome any feedback or insights you would like to raise with us, and to discuss any aspects of the reform with you any off your networks; if a conversation, presentation or technical discussion would be of benefit, let us know and we will be happy to facilitate it.”  

On Monday 15 February 2021, HMRC also published its approach to compliance with the rules.

According to HMRC this:  

  • ·outlines HMRC’s approach to supporting organisationsin applying the rules correctly and being compliant, and how HMRC will support them to do so;
  • provides information to affected organisationson how HMRC will work with them to ensure they are compliant. It reaffirms HMRCs previous commitments on penalties, historic returns and taking a supportive approach to ensure compliance;
  • Outlines some examples of how HMRC will support taxpayers to comply and the case studies provide operational examples of how HMRC will work with taxpayers; and 
  • Explains how HMRC will intervene where taxpayers deliberately do not comply, confirming that HMRC will step in where there is deliberate non-compliance. 

The briefing is not intended to cover the compliance approach for contractors; however, contractors may find it useful to understand how HMRC will ensure compliance with the off-payroll working rules.  

Further information about the off-payroll changes and how you can prepare can be found via the links below:-