October 4th, 2019.


The government will be reforming the operation of the off-payroll working rules from April 2020. The reforms which were successfully introduced into the public sector in 2017 will be extended to all sectors, making medium and large organisations and agencies responsible for ensuring the contractors they engage pay the right tax and NICs.

Businesses can prepare for reform by:

• Identifying and reviewing their current engagements with intermediaries, including personal service companies and agencies that supply labour to them

• Reviewing their current arrangements for using contingent labour, particularly within the organisation functions that are more likely to engage off-payroll workers

• Putting in place comprehensive, joined-up processes, for example assessing roles from a procurement, HR, tax and line management perspective, to ensure consistent decisions about the employment status of the people they engage

• Reviewing internal systems, such as payroll software, process maps, HR and on-boarding policies to see if they need to make any changes.

HMRC will also provide organisations with education, guidance and support to make sure they have the tools to make the right determination.

Check out www.gov.uk for more info.