Tax man to run additional sessions this week

HMRC has launched a second round of interactive workshops for construction firms to help the sector prepare for the impending changes to the IR35 tax rules.

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


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The new tax rules come into force on 6 April

Now HMRC has added two additional sessions for these businesses to be held this week, with the events running from 11am to 12.30pm tomorrow and Thursday (28 and 29 January).

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

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

> Comment: How to prepare for looming IR35 tax rules

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.

Already three HMRC workshops on the topic have taken place with a fourth running today (27 January).

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