The Government has announced key changes to the operation of the off-payroll working rules, known as IR35, which are set to come into force after 6 April 2020.
It has been confirmed that the changes will only apply to payments made for services provided on or after 6 April 2020.
The original plan was for the changes to be applied to any payments made on or after 6 April 2020, regardless of when the services in question were carried out. These new updates mean that organisations will only need to determine whether the rules apply for contracts they intend to continue after 6 April 2020.
The announcement was made on 7 February, ahead of the formal publication of the Government’s review into the implementation of the changes, which is due to conclude later in the month.
In a statement, HM Revenue & Customs (HMRC) said that a common issue raised over the course of the review has been businesses’ concerns over what payments the rules apply to and from when. 
The statement also said that the Government has listened and taken action early to give businesses certainty and more time to prepare to ensure the smooth and successful implementation of the reforms that come into force in April.
The Government is extending the 2017 reform of the operation of the rules in the public sector to all medium and large organisations in April 2020. This will shift responsibility for operating the rules to the organisation that engages the worker. As the statement points out, this is how employment status for tax is decided for the vast majority of people who do not work through their own company.