Government review off-payroll working rules
The UK government has announced the launch of a review into off-payroll working rules in order to address concerns from businesses and affected individuals about how the rules will be implemented.
The review will look into what measures the government can take to ensure the implementation of the new tax rules is smooth and successful. The reforms are due to come into effect on 6th April 2020 and make medium and large organisations in private and third sectors responsible for determining the tax status of contractors. This is to tackle non-compliance with the off-payroll working rules, known as IR35, which ensures a person who is like an employee but through a company, pays similar taxes to other members of staff.
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.”
Plans to ensure a smooth off-payroll transition
The review is due to be completed by mid-February and will ask affected individuals and businesses about their implementation of the reforms. The government plans to hold a series of roundtables to better understand what it can do to ensure a smooth transition to the new rules. It will also conduct internal analysis which includes evaluating the enhanced Check employment status for tax (CEST) tool and public sectors’ bodies experience of implementing the reform to the off-payroll working rules in 2017.
HMRC will work in tandem with the government to help educate and support those affected with the new rules. Their plans include one-on-one discussions, webinars, workshops, and targeted communications.
What about the self-employed?
The off-payroll working rules do not apply to the self-employed but only to those who are working like an employee. There are separate plans to launch another review into how the government can better support the self-employed. This will include looking into improvements to finance and credit, making the tax system simpler, and exploring how improved broadband and boost working from home.
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If you’re worried about how the implementation of the new off-payroll rules will affect you or your business, please don’t hesitate to contact the payroll experts at Essential Payroll, one of the South’s leading payroll bureaus. Simply call us on 02382 023223 and we’ll be happy to answer your questions.