blog header image

Posted : 07 Jan 2020 at 16:09:33
Category: Important Announcement

Share this article

The Government is launching a review of changes to off-payroll working rules today.

Jesse Norman, the Financial Secretary to the Treasury, said: "The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible."

The review, which will conclude by mid-February, will engage with affected individuals and businesses on their experiences of the implementation of these reforms.

placeholder

  • Government launches review into implementation of changes to the off-payroll working rules
  • Review will gather evidence from affected individuals and businesses to ensure smooth implementation of the reforms

The Government is launching a review of changes to off-payroll working rules today to address any concerns from businesses and affected individuals about how they will be implemented.

The review will determine if any further steps can be taken to ensure the smooth and successful implementation of the reforms, which are due to come into force in April 2020. As part of this, the review will also assess whether any additional support is needed to ensure that the self-employed, who are not in scope of the rules, are not impacted.

Off-payroll working rules, known as IR35, were introduced in 2000 to ensure that someone working like an employee, but through a company, pays similar taxes to other employees.

The reforms, announced in the 2018 Budget, are designed to tackle non-compliance with off-payroll working rules by making medium and large organisations in the private and third sectors responsible for determining the tax status of contractors.

The review will focus on the implementation of these reforms, which are due to come into force on 6 April 2020.

The government will launch a separate review to explore how it can better support the self-employed. That includes improving access to finance and credit, making the tax system easier to navigate, and examining how better broadband can boost homeworking.

Today’s announcement fulfils a commitment made by Chancellor Sajid Javid on November 30th last year.

Financial Secretary to the Treasury Jesse Norman said:

We recognise that concerns have been raised about the forthcoming reforms to the off-payroll working rules.
The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible.

The review, which will conclude by mid-February, will engage with affected individuals and businesses on their experiences of the implementation of these reforms.

As part of the review, the Government will hold a series of roundtables with stakeholders representative of those affected by the reform, including contractor groups and medium and large-sized businesses, to understand how the government can ensure smooth implementation of the reforms. The Government will also carry out further internal analysis, including evaluation of the enhanced Check employment status for tax (CEST) tool and public sector bodies’ experience of implementing the reform to the off-payroll working rules in 2017.

The off-payroll working rules do not affect the self-employed, as only those working like employees are in scope. As part of the review, the Government will explore whether there are any further steps it could take to support businesses in correctly determining employment status.

In parallel to the review, HMRC will continue its comprehensive programme of education and support activities, proactively helping customers to prepare for the reform to off-payroll working rules in April 2020. This will include one-to-one engagement, webinars and workshops alongside targeted communications and support for customers, and their representatives to help them prepare for implementation on 6 April 2020.

SIMILAR NEWS

blog header image
IMPORTANT ANNOUNCEMENT
THE GOVERNMENT LAUNCHES £2 BILLION FUND CALLED KICKSTART SCHEME

The Kickstart Scheme provides funding to employers to create job placements for 16 to 24 year olds. The government has introduced a new Kickstart Scheme in Great Britain, a £2 billion fun ...

blog header image
IMPORTANT ANNOUNCEMENT
ROCKY ROAD AHEAD FOR VANS REDEFINED AS CARS

If modified crew-cab vehicles should now be treated as cars for benefit in kind purposes, what does this mean for input VAT and capital allowances? Helen Thornley investigates the wider tax implicatio ...

blog header image
IMPORTANT ANNOUNCEMENT
CLOCK IS TICKING TO REPAY CORONAVIRUS GRANTS

Self-employed individuals, and employers, have 90 days to inform HMRC that they have over-claimed the SEISS or CJRS grants and repay any excess before penalties apply.  Any incorrect CJRS gr ...

blog header image
IMPORTANT ANNOUNCEMENT
TAX CREDITS DEADLINE: CUSTOMERS AT RISK OF LOSING OUT

Customers whose circumstances have changed in the last year or who have received a letter to reconfirm their income details must contact HMRC before 31 July. Tax credits customers only have until 31 J ...

blog header image
IMPORTANT ANNOUNCEMENT
OFF-PAYROLL APRIL 2021 PRIVATE SECTOR ROLLOUT NOW A CERTAINTY

David Chaplin of Contractor Calculator reported last night the following after the four-year loss against Off-Payroll Rules due to come in as of April 2021. David wrote; The April 2021 rollout of the ...

blog header image
IMPORTANT ANNOUNCEMENT
CITB AGREES TO CUT LEVY BILLS BY 25% FOR TWO YEARS

CITB has revealed plans to cut levy bills by 25% over the next two years and give cash-strapped contractors more time to pay. Employers will continue to have a payment holiday on the levy until S ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory