Many have questioned whether or not the off-payroll legislation will be delayed again. Although there was relief last year when the off-payroll rules were postponed there was also frustration for the companies that had taken the time and trouble to get there processes right. This has led to a reluctance this time round to carry out work unless absolutely necessary when there are so many other issues to deal with.
HMRC has consistently said that it believes that the new rules will be introduced and has been holding webinars with stakeholders to explain how it believes the rules will work.
In Parliament last week Shadow Chancellor, Anneliese Dodds MP, asked the Chancellor of the Exchequer “whether his Department plans to delay the introduction of IR35 from April 2021.”
Financial Secretary to the Treasury, Rt Hon Jesse Norman MP replied:
“The Government has been clear that the reform of the off-payroll working rules will be introduced on 6 April 2021. The Government remains committed to introducing this policy in order to address the unfairness of non-compliance with the existing off-payroll working rules.
Organisations should continue to prepare for the implementation of the reform. Since the reform was delayed in April 2020, Parliament has passed legislation enacting the reform from April 2021."
Rt Hon Jesse Norman MP also went on to say: "The Government regularly engages with a range of stakeholders to inform policy making. The Government continues to engage with key stakeholders and affected organisations in relation to their preparations for the forthcoming reform.”
Checking status
When it comes to determining status, HMRC advises employers use its CEST tool.
From April, public, private and third sector employers will be obliged to present contractors with a Status Determination Statement, which clearly outlines and explains the reasons behind the decision to deem the individual outside or inside IR35. As long as employers can show they have taken “reasonable care” to come to the decision and file the appropriate tax documents, says HMRC, they should avoid being penalised.
We’re currently working with our legal teams and advisors to ensure we can support our contractors and clients through the transition and help identify whether the roles are inside or outside of IR35.
Get ahead and check your current employment status now via the HMRC CEST tool. https://www.gov.uk/guidance/check-employment-status-for-tax