Well today, 7th February 2020, we see a “small” change to the IR35 Legislation which comes into force in just a few weeks time.

The original draft appears to have caused confusion over payments and when the rules should actually apply. Previously any payments made after the April deadline would have seen the rules apply and the appropriate deductions made, even if the work was carried out in March. However, as part of the actual IR35 review, it has been decided that there was not enough clarification on this and has lead to some snap decisions for end client and agencies.

So what exactly has been said?

“The rules, also known as IR35, will now apply only to payments made for services provided on or after 6 April 2020. Previously, the rules would have applied to any payments made on or after 6 April 2020, regardless of when the services were carried out. It means organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020, supporting businesses as they prepare.”

The formal publication of a review into the implementation of changes to the off-payroll working rules is due to conclude in February.

#ir35 #clarityumbrella #contractors

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