Light touch approach to new IR35 rules confirmed by HMRC

A briefing on the changes to the off-payroll working rules in the private sector from 6 April 2021 outlines HMRC’s compliance strategy. It states it will support those ‘who are trying to do the right thing and comply with the rules’ and help taxpayers ‘meet their responsibilities under the off-payroll working rules’.

The document recognises that people may make mistakes but HMRC reiterates that it will not penalise them in the first 12 months of the regime unless there is evidence of ‘deliberate non-compliance’. Further the department reaffirms its commitment that it will not use information acquired as a result of the changes to the off-payroll working rules to open a new enquiry into returns for tax years before 2021-22 – ‘unless there is reason to suspect fraud or criminal behaviour’.

HMRC adds that it will use a specialist team to carry out its...