IR35 Date Changed by HMRC for Contractors
After concerns by businesses who are having to implement the IR35 mess HMRC have changed the implementation of IR35 date. Well the implementation date remains April 6th.
However, many contractors were told by their client companies hat they would have to leave earlier than that as they could not be paid for work done prior to April 6th after April 6th.
However, HMRC announced today that “the off-payroll working rules will only apply to payments made for services provided on or after 6 April 2020”.
It stated that the move was a response to the fact that during its review, it found that businesses were concerned about “what payments the rules apply to and from when”.
Contractors could stay on till the IR35 date of April 6th 2020
That could mean that contractors who were told that they must leave by the end of February can now stay on till early April. They can bill after April 6th. What they still cannot do is do work for he company after that IR35 date.
It also means that contractors who are staying on can continue to be paid into their personal services companies for work done up to April 6th.
It’s a small bonus for contractors. However, it ducks the main issue which is the looming damage to be done to UK industry.
Major Problems Over IR35 Date for Businesses
According to Andy Chamberlain of contractors group IPSE :-
“As we approach the April deadline, HMRC are starting to realise just how difficult these rules will be for businesses to implement. Delaying the start date to when the work is actually performed, rather than paid for, is a sensible move, but it doesn’t address the fatal flaws in the legislation itself.“
Let’s hope that businesses are passing on their other concerns to HMRC. Many are about to lose a whole load of contractors. Those contractors will take not only heir skills and experience of them but also intimate knowledge of their company’s Business and their systems.
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