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IR35 - HMRC confirm delay for public sector

20 March 2020      Julia Ascott, Employment Taxes Specialist

BUFDG have received the following statement from the HMRC off payroll working team confirming that the changes affecting the public sector will also be delayed until April 2021.


"The rules for the public sector have been in place since April 2017. These rules will continue to apply, however changes that were due to be made to the rules have been postponed. For instance, public authorities will not be required to:

    • provide a Status Determination Statement to the worker and the party they contract with;
    • create a client-led disagreement process.

These will now come into effect on 6 April 2021 along with the rest of the reform."

Update...

The new Head of H&FE Sector at HMRC, Dave Cannon, also confirmed the following:

  • The delay to the introduction of the changes to the off-payroll rules means that the existing rules will continue to apply. Therefore, a client is not required to make a status determination in respect of any engagements and does not need to issue a status determination statement.
  • For individuals engaging in the public sector, the public authority will continue to make status determinations but will not be required to provide a status determination statement. The public authority will also not be required to set up a status disagreement process. However, you will still be able to submit representations if you disagree with your determination.

Good news all round!

Tagged : Employment Status, Payroll, Payroll and Employment taxes Group, Procurement, Tax

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