Changes to off-payroll working from April 2020 - Makesworth Accountants

Changes to off-payroll working from April 2020

Accountants in Ingleby Barwick Hartlepool Wybunbury Accountants in Accountants in East Tarbert accountants in Cambridgeshire accountants in Tregorden accountants in Trevarrick accountants in Clwyd accountants in Hawarden Accountants in Isle of coll Accountants in Stockinish Accountants in Lochdon Accountants in Rowton Accountants in Clackmannan Clackmannan Tower Accountants in Hayle | Accountants in Marazanvose | Accountants in Mawnan Smith Accountants in Norton Mandeville | Accountants in Hougham | Accountants in Bladbean | Accountants in Badlesmere | Accountants in Harty | Accountants in Rushenden | Accountants in Shorne | Accountants in Langley | Accountants in Halling | Accountants in Strood | Accountants in Greatstone | Accountants in Old Hawkinge | Accountants in Ditton | Off-payroll working

Changes to off-payroll working from April 2020

Topic:-Changes to off-payroll working from April 2020

The rules for individuals providing services to the public sector via an intermediary such as a Personal Service Company (PSC), changed from April 2017. The new rules shifted the responsibility for deciding whether the intermediaries’ legislation applies, known as IR35, from the intermediary to the public sector receiving the service.

In the 2017 Autumn Budget, the Government announced plans to extend these rules to off-payroll working in the private sector. The new rules come into effect from 6 April 2020. The changes are expected to raise over £1.1bn for the public purse in 2020-21. From this date, all medium and large-sized clients will be responsible for deciding the employment status of workers.

The changes mainly apply to businesses with an annual turnover of more than £10.2 million (known as the simplified test). If the simplified test does not apply, then the rules still apply if the private sector client meets 2 or more of the following conditions:

  • an annual turnover of more than £10.2 million
  • a balance sheet total of more than £5.1 million
  • more than 50 employees

If you meet the conditions above, you must start applying the rules when the changes come into force on 6 April 2020.

For more information on, Book a Free Consultation.

See also  Tax Diary September/October 2019

Need Accountancy Support?

For information on bespoke training, or if you have any other questions for Makesworth Accountant, please fill in your details below

Accountancy Support

Your Name(Required)

Proud to be featured in

Happy with our services? Please leave us a Google Review. Click here