HMRC has announced that changes to the off-payroll rules will only apply to payments made for services provided on or after 6 April 2020.
The announcement comes ahead of the publication of the government's review into the expansion of the off-payroll rules into the private sector.
In 2017, HMRC introduced new off-payroll rules to the public sector, which saw some contractors' net income cut significantly. HMRC also shifted the responsibility for compliance from the individual contractor to a public body or recruitment agency.
From 6 April 2020, new tax rules will use the 2017 changes as a starting point for the extension to medium and large organisations in the private sector.
In a statement, a spokesperson for HMRC said: '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 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.'
HMRC confirmed that the rules will now apply only to payments made for services provided on or after 6 April 2020. Previously, the rules would have applied to any payments made on or after 6 April 2020, regardless of when the services were carried out.
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