New rules come into force in less than three months

HMRC has said it is looking at running additional workshops on the IR35 tax rules after companies desperate for advice on the changes booked out the original events in less than 24 hours.

Yesterday HMRC confirmed it was running a series of workshops specifically for medium and large-sized businesses in the construction sector who may be affected by the changes to help them with their preparations.

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The new IR35 rules come into force on 6 April

These are taking place on 19, 20, 26 and 27 January and will run for up to an hour and a half.

But construction firms seeking help preparing for the changes flooded the portal for the sessions, snapping up all the available places in less than a day. HMRC is yet to confirm when these will take place.

The workshops have been designed to provide additional support and an opportunity for firms to ask questions.

HMRC said the companies taking part should also use HMRC’s other resources and already have some knowledge of the forthcoming changes.

The new rules govern the tax status of an individual working as a contractor or freelancer and whether, for taxation purposes, they ought to be deemed an employee on payroll.

The changes mean that medium and large businesses in the UK will be responsible for determining whether IR35 rules apply to those working for them as contractors, whereas previously the individual contractor was responsible for making this decision.

Originally set to come into effect from April 2020, the implementation of IR35 legislation changes was postponed until 6 April this year because of the coronavirus pandemic.

Topics covered in the workshops

  • Which engagements are covered by the new rules
  • Status Determination Statements
  • The client-led status disagreement process
  • The recovery of debt provisions
  • Interaction with CIS
  • VAT reverse charge