It will come as no surprise that the implementation of IR35 has had many employers in a bit of a ‘tizz’ in previous years – however, with the foreseeable future to include both sectors public and private from 2020/21 tax year software developers have been given a new remit for their payroll software.
So, from April 2020 software developers will be providing an Off-Payroll flag to easily identify who is an off-payroll worker.
In some existing software, this flag is currently present however, it does not communicate with HMRC via the RTI submissions.
This will be greatly welcomed by all Employers as it should reduce the number of queries about other payments due unnecessarily, for example, why has Student Loan not been deducted.
As we are all aware IR35 Off-Payroll working only affects Tax, NI (EE’s and ER’s) and the Apprenticeship Levy for employers only – no other deductions are required.