Yorkshire Post

Off- payroll changes could create ‘ confusion’ for many businesses

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PAYROLL FIRM Hudson Contract is urging contractor­s and freelancer­s to avoid quick fixes as HMRC warns businesses to prepare for changes to off- payroll working rules known as IR35.

The government agency wrote to customers announcing it has relaunched its programme of support to help companies and contractor­s get ready for the new regime from April 2021.

Earlier this year, HMRC delayed the introducti­on of IR35 for 12 months to help businesses and individual­s deal with the economic impact of Covid- 19.

In its new correspond­ence, HMRC said: “We recognise that businesses are facing difficult challenges due to Covid- 19. HMRC is providing informatio­n and support now to ensure businesses have plenty of time to prepare for the changes coming into effect in April 2021.”

IR35 rules apply if a worker

provides their services to a client through an intermedia­ry, but would be classed as an employee if they were contracted directly.

The rules intend to make sure all workers pay broadly the same tax and National Insurance contributi­ons.

From April 6, 2021, all medium and large- sized private sector clients will be responsibl­e for deciding if the rules apply.

Ian Anfield, managing director of Bridlingto­n- based Hudson Contract, said: “This announceme­nt will go down like a lead balloon with companies and freelancer­s fighting for survival in a difficult trading environmen­t with the constant imposition of new lockdown restrictio­ns.

“In the best of times, businesses and freelancer­s found the HMRC guidance on IR35 difficult to follow, causing confusion and concern over liabilitie­s. The latest set of guidance runs over hundreds of pages and invites companies to attend online seminars which HMRC plans to run between now and April next year.

“The confusion has created a vacuum for bad advice with socalled HR specialist­s and umbrella organisati­ons offering services which could lead to incorrect... determinat­ions.”

 ??  ?? IAN ANFIELD: ‘ This will go down like a lead balloon with companies and freelancer­s.’
IAN ANFIELD: ‘ This will go down like a lead balloon with companies and freelancer­s.’

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