Be prepared – Blake Morgan calls on business to get ready for 2020 payroll changes

Leading law firm Blake Morgan is offering a new service designed to help businesses prepare for changes to off-payroll rules which come into force in April 2020.

The new legislation is designed to bring the private sector in-line with the public sector when it comes to employing contractors.  From April next year, businesses will be required to assess the status of their contractors in order to ensure the correct amount of payroll tax is being deducted.

The key issue for businesses to understand is whether or not a contractor should be considered an employee for tax purposes.  Variations in the way contractors are engaged and where in the supply chain they sit can be complex, so it is important businesses act now in order to prepare for the new legislation.

Blake Morgan Partner and corporate tax specialist Cathy Bryant said: “Getting ready for the new 2020 legislation could have significant implications for large and medium sized businesses that employ contractors.”

“The main issue for employers is to understand how the business engages with contractors and assessing the terms of those relationships.  Businesses can then use this due diligence to respond to the ways in which the new legislation impacts their business and their relationship with their contractors.”

To help businesses with their due diligence work, Blake Morgan is offering a brand-new fixed fee consultancy service.  Depending on the level of preparedness for the rules, the firm can advise on a range of matters – from an audit template designed to map contractor relationships through to reviewing and advising on contractor terms and conditions.

Cathy Bryant continues: “The new rules represent one of the biggest changes to contractor arrangements for many years.  And while April 2020 might seem some way off, understanding your obligations and preparing to take action now will help ensure there are no nasty surprises come the next tax year.”