Perspectives

IR35 – Journey to April 2020

We are pleased to welcome you to Deloitte’s 'IR35 – the journey to April 2020' dedicated pages. The goal of these pages is to support all our clients who will be impacted by the IR35 private sector changes. We will continually share Deloitte’s latest insight, key updates and solutions as we move together towards the introduction of one of the most significant employment tax changes in recent times.

Recent updates

15 Jan 2020

IR35 Webinars - The first session will be on 30 January and be focused on readiness. The second session on 24 February will report back on the outcome of the Government’s review.

9 Jan 2020

Complete our latest Pulse survey on your preparations for the IR35 changes here

8 Jan 2020

Government launches a review of the changes. See our newsflash here

1 Jan 2020

Roadmap updated to include January to March actions

9 Dec 2019

New video content on the benefits of careful planning and defining a clear employment status assessment strategy can be seen here

25 Nov 2019

HMRC releases the new version of CEST. See our newsflash on this change here and a link to the new tool here

1 Nov 2019

Our upcoming Employment Taxes School events in Leeds (26 November), Birmingham (28 November, 5 December and 12 December), Nottingham (3 December) and Reading (10 December) will be focussing on IR35, including employment law and payroll implications. Please see here for more details and to register your attendance.

28 Oct 2019    

New videos added to page, including from Mark Groom (below) and video soundbites on Status Determination Statements and Dispute Resolution

22 Oct 2019

HMRC releases briefing on reform of off-payroll working rules

1 Oct 2019

Roadmap updated to include October-December actions

22 Aug 2019

HMRC guidance on IR35 changes released.

14 Aug 2019

Results of latest pulse survey released.

11 July 2019

Draft legislation released. Please see our newsflash.

1 July 2019

Roadmap updated to include July-September actions.

11 June 2019

See our interactive guide on a combined tax, legal and consulting approach to contingent workforce management.

The proposed rule changes

In October 2018, the Chancellor delivered his Autumn Budget and confirmed that the proposed reform to the taxation of personal service companies (PSCs) in the private sector is to be implemented from 6 April 2020 for large and medium sized businesses.

The draft legislation released on 11 July 2019 confirmed that the new rules will largely mirror those implemented from April 2017 in the public sector, with some refinement to be facilitated by a formal consultation process until 5 September 2019. This means that the responsibility for undertaking employment status assessments should now be the responsibility of the entity using the services of the worker, whilst the responsibility for operating PAYE withholding will be that of the entity paying the PSC. The draft legislation also introduces the statutory concept of a “Status Determination Statement” or “SDS”, which clients will be required to provide directly to the worker. This SDS must include not only the decision of the client’s “deemed” employment status, but also the rationale for reaching this conclusion.

The expected new rules are covered in this newsflash with further commentary and updates on this to follow soon.

Mark Groom provides an update on the Journey to April 2020

Mark Groom and James Warwick share their thoughts on the journey to April 2020.

So what can you find on these IR35 pages?

For organisations that engage a significant number of off payroll workers, where the impact and operational challenge of being ready by April 2020 is likely to be significant, we hope that you will find it helpful to stay in touch with our roadmap to April 2020. The roadmap contains some of the key project workstreams that your organisation will need to tackle.

Throughout the journey we will share our perspectives on key themes and challenges. Our video soundbites page contain short videos exploring specific topics.

To complement the advisory support we can offer, we have invested in developing technology based solutions to support businesses in tackling the IR35 challenge. These are innovative, dynamic tools designed to assist businesses where volume and big data is a particular challenge.

These pages will also house key publications and recordings of webinars that we have broadcast. These will be a useful source of knowledge to anyone tackling the IR35 rule changes.

We will also of course provide our perspective on any updates from HMRC and on the legislative process.

How can Deloitte help?

We can help you prepare for all aspects of the IR35 changes, including:

  • Working with your project team of key stakeholders to ensure you lay the best possible foundations, i.e. that you identify the key process steps and decisions which will need to be taken to effectively manage the change. This could begin by holding a facilitated workshop.
  • Using automation techniques prepared to identify PSCs with whom the business engages.
  • Managing the employment status assessment process and using our workflow solution to streamline communications and maintain an audit trail of discussions.
  • Drafting communications to collective/specific stakeholders, including impacted PSCs.
  • Considering contractual amendments with both PSCs and agencies you use to support with the transition to the new rules.
  • Designing new processes and controls to manage the operational impact of the changes, e.g. payroll.
  • Supporting end-to-end project management on all of the above.

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