The draft rules for off-payroll working for the private sector come into effect from 6 April 2020 under a statutory instrument, (Draft) Income Tax (Pay As You Earn) (Amendment) Regulations 2020.

The changes shift responsibility for operating the IR35 rules from the worker’s company to the medium and large-sized organisation they work. These rules are already in force across the public sector.

The release of the draft legislation has occurred before the completion of the government’s limited review of the IR35 rule changes, announced on 6 January. The review was scheduled to conclude by mid-February and was meant to include a series of roundtables with stakeholders, representatives of those affected by the reform, including contractor groups and medium and large-sized businesses.

It also includes details on how the government proposes to operate the controversial transfer of debt obligations – effectively the power that HMRC has to recover tax and national insurance from other parties in the contractor/ intermediary/ engager supply chain.

Susan Ball, RSM employer solutions partner said: 'Many businesses may have been hoping that the review and earlier responses to the draft primary legislation offered the possibility that some of the more controversial elements of the rules – notably those relating to the transfer of debt provisions – would be delayed or dropped.

‘However, the publication of this draft legislation has upped the ante and suggests that the government is pressing ahead.

'Businesses that engage contractors, intermediary firms that find and place contractors as well as contractors themselves should all read this draft legislation carefully and feed back any concerns before the consultation closes on 19 February.’

• Essential reading: Government launches limited review of IR35 rule changes

The consultation period closes on 19 February 2020.

HMRC Open consultation - Draft secondary legislation: off-payroll working rules from April 2020 issued 22 Jan 2020