The Autumn Budget confirmed that the proposed reforms to the taxation of personal service companies in the private sector will be implemented from 6 April 2020.
The new rules will apply to large and medium-sized businesses, and are expected to largely mirror those implemented from April 2017 in the public sector, with some refinement to be facilitated by a formal consultation over the coming months. This means that from April 2020:
Whilst the implementation date gives some time to prepare for the changes, work will still need to begin now in order to prepare. Where internal project teams have already been established and an assessment of supply chains has taken place, the next significant step will be developing a policy over a number of important areas. These include cost and pricing decisions, how to manage status assessments, the communication process, dispute management, contractual updates/protection and wider governance.
For businesses at the start of the journey, confirmation that the change is happening will be the trigger to bring impacted stakeholders together to determine the way forward.
The scale of the challenge for organisations will depend on:
There is a lot to do before the implementation date and whilst organisations will be comforted by the longer timeframe, starting now is strongly recommended.