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Prepare now for IR35 changes, advises HMRC

IR35 tax avoidance reforms are set to come into effect in April 2020, and HM Revenue & Customs wants firms to start preparing for the changes now.

The changes to IR35 will see responsibility for determining tax status shift from the employee to the employer. 

The reforms were introduced into the public sector in 2017, and have been planned to be rolled out to the private sector for some time but are now scheduled for an April 2020 start. HM Revenue & Customs (HMRC) is advising businesses to prepare for the changes now, by checking their compliance with the regime ahead of its introduction.


HMRC has opened a consultation, which runs until 28 May 2019, to canvass views from the private business sector about how best to implement the reforms.

You can read more about the consultation here; https://www.gov.uk/government/consultations/off-payroll-working-rules-from-april-2020

If you would like to speak with FSB on this matter, please contact Lorence Nye, FSB Policy Advisor – Tax and Finance at Lorence.nye@fsb.org.uk