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ARTICLE · 24 FEBRUARY 2020

Government Introduces Minor Change To IR35 Rules

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his will not, however, give them employee status for other employment considerations.

United KingdomTax

It has been widely publicised that the new off-payroll working rules (otherwise known as IR35) are coming into force on 6 April 2020. These changes mean that employers will now have to assess whether a contractor, providing services through a personal service company, should be taxed as if they are an employee. This will not, however, give them employee status for other employment considerations.

Further to our previous update on status determination (which can be viewed here), HMRC has recently announced that the operation of the new tax rules will only apply to payments made for services provided on or after 6 April 2020. This will apply whether or not the services are provided by a new contractor, or an existing contractor. However, if services are provided wholly before 6 April, but payment is made on or after 6 April, the new rules will not apply. 

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