Large, medium sized businesses, charities and public bodies are being notified of the changes by HMRC. In their communication they are sign-posting resources including webinars and a factsheet for contractors.
Draft legislation has also been issued for consultation which closes on 19 February stating how the changes will shift responsibility for operating the rules from the worker’s company to the medium and large-sized organisation they work for.
As a reminder, HMRC’s limited guidance states:
look at your current workforce (including those engaged through agencies and other intermediaries) to identify those individuals who are supplying their services through personal service companies
determine if the off-payroll rules apply for any contracts that will extend beyond April 2020. You can use HMRC’s Check Employment Status for Tax [see below re CEST] service to do this
start talking to your contractors about whether the off-payroll rules apply to their role
put processes in place to determine if the off-payroll rules apply to future engagements. These might include who in your organisation should make a determination and how payments will be made to contractors within the off-payroll rules.
From a practical viewpoint, undertaking the assessments takes time and requires those assessing to have a knowledge of the work undertaken and also the terminology used. This is why many in the private sector have already, as was the experience in the public sector, removed many startup businesses from their list of suppliers .
As previously highlighted, the CEST tool has been updated allowing for workers’ details not to be entered. The tool states:
‘If you do not know who the worker is, the tool will not ask questions about the worker’s circumstances. You will still get a determination that HMRC will stand by.’