Updated: Further Technical Note added to update the information published at Autumn Statement 2016.
At Autumn Statement 2016 the government confirmed that it will reform the intermediaries legislation in Chapter 8 Part 2 Income Taxes (Earnings and Pensions) Act 2003 (“ITEPA 2003”) often known as IR35. The government has published draft legislation for Finance Bill 2017 that introduces a new Chapter 10 Part 2 ITEPA 2003.
Subject to Parliamentary approval and Royal Assent the measure will introduce Off-payroll working in the public sector legislation applying to payments made on or after 6 April 2017. The measure applies to contracts entered into before that date. If work is completed before 6 April 2017 but payment made on or after 6 April 2017 it will be within the new legislation.
A tax information and impact note has also been published.
Source: HMRC