HMRC Announce Changes to Off-Payroll Working Rule

The HMRC today announced a subtle change to the introduction of the Off-Payroll Working Rules which will come into force from the 6th April 2020.

The change means that the trigger for the rules will move from PAYMENTS made from 6th April 2020 to SERVICES DELIVERED from 6th April 2020, a decision that has been met with a mixed response.

Leaders and Laggards

Depending upon how an organisation has set itself up to address the impending changes we will have a new set of winners and losers due to this change. Many oganisations who have been at the leading edge of preparing for the change, issued notice to their PSC workers that where necessary they would have to switch to PAYE terms at the end of February 2020, thus no payments would be caught in the “PAYMENTS” trap. So these workers under the newly released guidance will have been migrated 1 month early to their new tax status and thus be paying PAYE on a month’s work that could have been completed under the current tax arrangements.

Meanwhile those working for the laggards who receive a requirement to convert to PAYE will now get an extra month to make the necessary arrangements.

Changes will go-ahead

The clear message from today’s communications would be that the new legislation will be implemented on the 6th April 2020 and the much talked about delays seem even less likely that they were before.

Click Here for >>>Announcement

Click Here for >>>Update Guidance on Off-Payroll Working Rules 6th April 2020

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