posted on 26 January 2017, updated on 27 January 2017
In the Autumn Statement 2016 the government confirmed that it will reform the intermediaries legislation in Chapter 8 Part 2 of the Income Taxes (Earnings and Pensions) Act 2003 (ITEPA 2003) often known as IR35. The government has published draft legislation for the Finance Bill 2017 that introduces a new Chapter 10 Part 2 of the 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.
More information and an online tool are due from HMRC shortly, in the interim please see this HMRC Technical Note.