The government has announced a review into the implementation of the changes to the IR35 rules on off-payroll working which are due to come into force in April 2020.
The announcement of a review is to be welcomed, given the difficulties faced by businesses in determining the employment status (for tax) of their off-payroll workers. However, many had been hoping for a delay to implementation in order for a full review to be undertaken, in view of the fact that the changes take effect in under 3 months time. There is no suggestion that the changes will not still come in in April and the aim of the review appears to be to ensure a "smooth" implementation.
The announcement fell short for the Recruitment and Employment Confederation, which had urged the government to push back the changes to 2021 to ensure organisations were sufficiently aware of the changes. It said a delay would allow the government to regulate umbrella companies and reduce the risk of non-compliant umbrella firms “prospering”.