HMRC Launches Review of New Off-Payroll Rules
HMRC has just announced a review of the off-payroll tax legislation to ensure a successful transition to the new rules. The off-payroll tax, also known as IR35, will be implemented in April 2020 regardless of the review, but will give companies the opportunity to voice concerns and identify potential issues with implementation.
Many firms that employ contract workers are disappointed with the review, believing the new off-payroll tax will hurt contractors and firms that hire them. There are many contractors and small firms concerned that staying in compliance with the new IR35 rules will be impossible, and many who believe the rules are not fair for contract workers.
As payroll rules evolve, it’s important to stay ahead of regulations to avoid compliance fines or penalties from HMRC. The new IR35 rules were created to ensure each contractor performing the same job as a company employee pays the same tax and national insurance contributions, but will change the way contractors and employers report and pay for tax and insurance.
If you are in the private sector and employ contract workers or use personal service providers to staff your office, you will need to comply with the new IR35 rules beginning April 2020, regardless of the current review being done by HMRC. We can help simplify your payroll and compliance procedures with our easy-to-use technology, customised reporting, and CIPP-certified team. We can help ensure compliance, stay ahead of new regulations, and file directly with HMRC. Talk to us about getting your payroll under control in 2020 – click here to get started