Government launches review of planned changes to off-payroll worker tax rules (IR35)
The Treasury have launched a review of the planned changes to off-payroll working. By way of reminder, the planned changes are designed to tackle non-compliance with IR35 by making medium and large-sized organisations outside of the public sector responsible for determining the tax status of contractors who provide their services through their own personal service company.
Through the review, the Government is seeking to determine whether there are any further steps that can be taken to ensure a smooth and successful implementation of the reforms, which are due to come into force on 6th April 2020. Further evaluation of the controversial ‘CEST’ employment status tool (which is designed to help businesses determine whether or not a contractor is within scope of the new planned rules) has also been promised, as despite having a recent overhaul, the tool is still viewed by some as unfit for purpose. The review is due to end in mid-February.
This review was eagerly awaited as the new rules will have a significant impact on many individuals and businesses. Those who were hoping for abolition of - or substantial change to - the proposed changes look set to be disappointed. It appears that the review will not look at the underlying legislation; rather the emphasis appears to be very much on driving forward a smooth implementation of the proposals.
The planned implementation of the new rules to most private sector organisations looks like it will still go ahead, unaltered, or at least with very little change, on 6th April 2020. It is crucial that businesses using self-employed contractors caught by the planned rules are fully prepared for the changes coming into force and we have been assisting many clients with such preparations. For further information on how the changes may affect your business, and how we can assist, please click here.
12th May 2021
The adjusted right to work checks will now end on 20 June 2021.
22nd April 2021
From the 17 May employers must comply with the regulations which were in force prior to 30 March.
1st April 2021
Ronnie Brown gives his top tips to prepare for the changes to off-payroll worker tax rules.