Budget 2018 announced that reforms introduced in 2017 for the public sector would be extended to all sectors, from 6 April 2020, giving businesses time to prepare. The Government consulted widely on the proposed extension of the reform to all sectors, including over summer 2018 and spring 2019. Having listened to concerns, the Government announced the changes be introduced from April 2020 for medium and large-sized organisations only.
The Government has worked closely with external stakeholders to ensure that they are ready for these changes, providing targeted support for companies to help them implement these changes. HM Revenue and Customs (HMRC) continue to work with stakeholders to make improvements to the Check Employment Status for Tax (CEST) digital service to help them make decisions on the employment status for tax purposes of their workers.
In addition, HMRC have set up dedicated teams to provide education and guidance to all businesses affected by the reforms. This support will include one-to-one support for 2,000 of the UK’s biggest employers and direct communications to around 15,000 medium-sized businesses.
HMRC have produced guidance for customers affected by the rule changes, which can be found on GOV.UK: