Off payroll delayed – problem solved?
Many people breathed a sigh of relief when they heard the announcement on Tuesday night. The nightmare that was IR35 was over (at least for now). At worst, they have another 12 months to prepare for the changes and maybe even enough time to convince HMRC to stop it altogether.
All great news, yes?
Sorry to disappoint, but my conversations over the last couple of days tell me that not everyone was pleased with the delay – particularly the timing of it.
The delay also brings up some questions; here are just a few.
· If we've assessed the contract as being inside IR35 and I know that the contractor is planning on not operating PAYE/NIC via their PSC after this April, do I have a duty to report this to HMRC?
· Similarly, how can the contractor defend an ‘out of IR35’ stance for next year if we’ve issued our SDS already?
· Should I store the SDS I’ve just completed and re-use it next year if they are still working with us in the same way or am I best to formally withdraw them and start again?
· I’ve offered a permanent position which hasn’t yet been accepted. Given everything that is happening, should I withdraw this offer?
· If the contractor agrees, can we deduct PAYE anyway?
· What compliance activity will HMRC take in the interim period?
The answer to some of these questions might be straightforward, but I hope that they give a flavour of the concerns that the delay has raised.
Is the delay good news? Yes, but the timing couldn’t have been worse and lots of businesses are now grappling with yet another set of changes to IR35 pre April.
In, out, in, out, shake it all about :-)
Making things happen
4 年Good article John. Meanwhile.... in other departments within your clients, they are grappling with: Losing business (varying from completely to some) *and* not getting paid by existing clients and therefore struggling to see how they will pay their suppliers...such as Agents.....who then will be struggling to stay in business. The multiple, time critical challenges facing business is unprecedented in my lifetime. The Government has promised: “We will do whatever it takes.” In my opinion that means HMRC getting onto LinkedIn and answering your valid questions. Now. They must take the load off business by clarifying their statements....otherwise there will be no tax to be collected
Commercial Director @ WTT Group
4 年I echo this post completely, deferring the reforms to next year was undoubtedly the correct decision but the timing was awful. However it now leaves many questions, as you say some fairly straight forward, some are more complex and require more thinking.