HMRC has now confirmed there will be a year long soft landing period for engagers. Penalties for inaccuracies relating to off – payroll working will not be imposed on engagers, unless there is evidence of deliberate non-compliance.
Some commentators, however, are disappointed with this, given it would appear to only apply to the penalty aspect, and not necessarily to the additional tax liability owed as a result of inaccurate employment status determinations.
The roll-out of the off-payroll rules to the private sector will still take place on 6th April, however, HMRC has committed to commissioning external research into the impacts of this reform, including how the status determinations are being made, six months after implementation.
In their latest report, HMRC have again reiterated that they will not use information from the implementation of the new rules to open up IR35 enquiries into contractors for earlier tax years, unless there is reason to suspect fraud or criminal behaviour.
For further information contact Gillian Wayne gillian.wayne@drummondlaurie.co.uk or call on 01324 441258.