Last week, the government confirmed that changes in the upcoming legislation would not be retrospective, and changes would only be applied to payments made for services provided on or after 6 April 2020. Their initial plan was that any payment to contractors made after 6 April 2020 would be subject to the new rules, regardless of whether the service was performed before this date or not.
A positive result for organisations as it means they will now only have to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020, rather than mixing the two tax years.
There are still calls to delay the roll out of these new rules to the private sector, given we are less than two months now until implementation, with still so many unanswered questions.
For further information contact Gillian Wayne firstname.lastname@example.org or call on 01324 441258.