The much anticipated draft Finance Bill was published on the 11th July in respect of the IR35 off-payroll working which comes into effect from 6th April 2020.
Some initial high level observations:
- The off-payroll working rules will go ahead from April 2020 with no fundamental alteration from what was initially proposed;
- Small, non-public sector businesses will be exempt from operating the new rules;
- There will be a requirement for the end user to pass both the employment status determination and reasons for this determination to the party below them in the chain and the worker
- Legislation establishes when liability transfers up the chain in the event of failure, HMRC guidance will set out when they deem it shouldn’t apply – a determination is deemed not to have been completed if there is a failure to take reasonable care
- Disagreements between the end user and worker– there is minimal detail in legislation in this regard but it states that a “client must give reasons for deciding that the conclusion is correct” – failure to respond within 45 days will result in liability
- HMRC has advised that guidance is to come in “Summer 2019”
We will be holding a number of seminars across the Midlands on this issue early in the Autumn. Make sure to respond early when the invitations are issued as we anticipate that these sessions will be very well attended.