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IR35 changes restricted to services provided on or after 6 April 2020

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HMRC has confirmed in a press release that the proposed extension of the off-payroll (IR35) rules to the private sector will apply only to payments made for services actually provided on or after 6 April 2020. As drafted, the rules would have applied to any payments made on or after 6 April 2020, regardless of when the services were carried out. See

HMRC has now updated its Employment Status Manual with new guidance at ESM10000 onwards to cover the draft off-payroll working legislation from April 2020.

A government review of the changes, announced in January, is due to conclude by the end of February.

Penny Simmons, a legal director at Pinsent Masons, commented that the latest announcement ‘probably kills any residual hope that the government’s review would lead to a delay. This is probably the best offer that businesses and contractors alike are going to get from HMRC’.

The House of Lords Finance Bill sub-committee has invited interested parties to submit written evidence by 25 February for its inquiry on the draft off-payroll legislation. The inquiry will seek to cover the existing public sector measures, the impact of the new rules on organisations, determining the tax status of workers, and the policy objectives.

Lord Forsyth of Drumlean, chair of the Finance Bill sub-committee, said: ‘To inform our work we want to hear from as broad a range of people and organisations as possible. If you have a view on off-payroll working rules, please let us know what you think’.

Issue: 1475
Categories: News