HMRC has recently published revisions to its Employment Status Manual, which includes guidance to off-payroll working legislation. The revisions are made in anticipation of the significant reforms coming into force on 6 April 2021. Reforms which will see medium to large companies in the private sector becoming responsible for determining tax status and, where appropriate, accounting for income tax and national insurance contributions of their off-payroll workers.
Notable amongst the revisions is HMRC’s confirmation that a company will not fall within scope of the amended IR35 regime, where the off-payroll worker has no interest in that company. This clarifies the uncertainty surrounding whether workers, supplied to an end client via an independent employment or other corporate agency, would be covered (see guidance here).
HMRC have also confirmed that status determination statements – which medium to large businesses will need to provide to off-payroll workers from 6 April 2021 onwards – can be provided through an online portal (see here). While the process of producing status determination statements can be subcontracted, the new guidance confirms that the end client will still remain responsible for that determination in any event (see here).
Jonathan Mumby comments:
"As companies get to grips with amended IR35 legislation, the further clarity provided by the revised guidance is helpful. Companies are encouraged to consider the guidance in full and, where dealing with off-payroll workers, to obtain specialist advice as soon as possible."
Please contact a member of the team here to discuss this issue further.
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