Governance & Compliance 66: Contractor Tax Status – Regulatory Change from 6th April 2020

FROM 6th APRIL 2020, THE REGULATIONS CHANGE AND WE ARE OBLIGED BY LAW TO ADVISE CONTRACTORS OF THEIR TAX STATUS BEFORE THE WORK STARTS

Please see further guidance in the Employment Status Portal SharePoint site here: Employment Status Portal Link

There is also leaflet explaining the new tax rules coming from April here: New Tax Rules Leaflet link

The penalties for breaches of contractors’ new contractual rights are severe, as are the penalties from HMRC for errors (which can be imposed for errors up to 6 years old) – and these are chargeable to your service budgets.

Please ask anyone who engages contractors to review their arrangements now and seek advice from the Tax Compliance Team at an early stage in the engagement of new contractors.
Many of the issues Tax Compliance are identifying are with arrangements that have been incorrectly treated for many years, and often have never been referred to Tax Compliance – any ongoing arrangements with existing contractors need to be reviewed at least every 12 months.

The Tax Compliance Team is here to help, and we have an Employment Status Specialist who can offer advice and support – but only if we identify these contractors in the first place!
Email: finance.employmentstatus-mailbox@devon.gov.uk

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