HMRC announced changes to the upcoming off-payroll working rules ahead of its implementation date of 6 April 2020. The new changes will now only apply to payments made for services provided on or after the implementation date.

Previously, the rules, also known as IR35, would have applied to any payments made on or after 6 April 2020, regardless of when the services were carried out.

This means organisations will only need to determine whether the rules apply for contracts they plan to continue beyond 6 April 2020, supporting businesses as they prepare.

The changes come ahead of the publication of the government’s review, which is due to conclude in February as well as a new House of Lords review announced on Friday. While some might hope the various reviews will result in further changes or delays, the government has chosen to publish an Employment Status Manual today providing guidance on IR35 which seems to suggest that no further amendments are likely.

Seb Maley,CEO of IR35 expert Qdos, said, “The government claims it is taking ‘early action’, but with less than two months to go until the reform arrives, this is a last-minute change that could easily confuse businesses further - albeit a tweak to the rules that gives agencies and end-clients a few extra weeks to prepare.

“Most businesses impacted by reform have spent time and money making arrangements to take into account the original rules,” Maley said. “Nonetheless, our advice to agencies and end-clients is to use this time wisely - communicate with the contractors you place and conduct well-informed and case-by-case IR35 assessments.”