HMRC ANNOUNCES IR35 CHANGES TO HELP BUSINESSES PREPARE CONTRACT PAYMENTS AFTER 6TH APRIL 2020
HMRC has announced changes to the IR35 legislation to give businesses more time to prepare their contract payments ahead of the reform date in April.
WHAT HAS CHANGED?
The new IR35 rules will now apply only to payments made for services provided on or after 6 April 2020.
Previously the IR35 rules applied to any payments made on or after 6 April 2020, regardless of when the services were carried out.
WHAT DOES THIS MEAN FOR ORGANISATIONS NOW?
This means organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020.
These changes have been set out in the updated guidance in the Employment Status Manual.
NEED ASSISTANCE WITH YOUR RECRUITMENT AGENCY'S PAYROLL?
If you are an existing recruitment agency who is looking for an efficient and compliant back-office and accounts solution, ahead of the new IR35 legislation, TBOS can help.
We currently run the complete back-office for over 100 agencies that cover permanent and contract recruitment across many different industries here in the UK and overseas. Our solutions are also 10 years industry proven with the added benefit of delivering significant savings for many of our recruitment agency clients over the years.
Our team essentially become your agency's full accounts team, managing everything from timesheets, invoicing and finance right through to credit control, bookkeeping and all your statutory year-end accounts. Not forgetting, you have a recruitment-specific accountant on speed-dial - which is invaluable in times of crisis.
IR35 SUPPORT FROM TBOS
On the run up to the IR35 legislation, TBOS has and continues to support our clients by delivering a number of IR35 resources and events to help our agencies through the changes. It is incredibly important that we support our clients in order for them to remain compliant and for them to continue with business as usual. If you would like some assistance with your agency's IR35 requirements, please do not hesitate to contact our team today.
You can find some of our FREE IR35 resources here.
MORE INFORMATION FOR CONTRACTORS
Contractors can find information about changes to the off-payroll working rules in HMRC’s Contractor Factsheet