UK and International Tax news

Changes To Off-Payroll Working Rules Delayed By One Year

Wednesday 25th March 2020

HMRC has announced that the changes to the off-payroll rules have now been delayed until April 2021 because of the spread of the coronavirus pandemic.

The changes were due to come into effect on 6 April 2020 but will now be implemented from 6 April 2021.  The existing off-payroll working rules will continue for a further year.

For those which have already made changes to reflect the new rules, HMRC has said that Status Determination Statements will have no standing in law and will not be used as evidence in any enquiry dispute during the coming year.

The legislation implementing changes to off payroll working is now expected to be published later this year and HMRC will be updating its Employment Status manual to reflect this as soon as possible.

Under existing rules, where work is undertaken for a public authority, the engager, rather than the worker’s PSC, is responsible for determining the tax status of the contract, i.e. employed or self employed.  If the contract looks more like employment, the engaging party must ensure that any payments made to the worker under that contract are paid through a payroll.

Where work is undertaken for a private sector engager, the worker remains responsible for determining the tax status of the contract and ensuring that the IR35 rules are applied to any payments made to their personal services company if the work looks more like an employment contract.


If you would like more information on the rules, please contact Keith Rushen on 0207 486 2378.

Contact Us