Update: As of 17 March 2020 the Chancellor, Rishi Sunak, has announced the IR35 reforms will be delayed for a year in response to COVID-19. The legislation is now expected to take effect on 6 April 2021, rather than 6 April 2020. Providing businesses with more time to prepare for the impending changes.
From April 2020 medium and large organisations in all sectors of the economy where to become responsible for assessing the employment status of individuals who work for them through their own limited company.
According to the Association of Labour Providers, the reform would not introduce a new tax, or apply to the self-employed, who are outside of the scope of the existing rules. The off-payroll working rules, known as IR35, were previously introduced in 2000 to ensure that someone working like an employee, but through a company, pays similar levels of tax to other employees.
On 7th February 2020, HMRC published some minor changes to the off-payroll working rules, It is unclear how these changes will be addressed when the new rules are finally implemented. HMRC did announce the following:
It is your responsibility as a business to understand and prepare for changes to the off-payroll working rules (IR35) if you're an intermediary and your worker provides services to a client. You can do this by visiting the official Government website - https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-intermediaries