Concerns were raised as HMRC published draft secondary legislation of the off-payroll rules for technical comment on 22 January. The release of the draft legislation has occurred before the completion of the government’s review of the IR35 rule changes. This has lead many to believe that the review won’t make any meaningful amends.…READ MORE
The government announced the official launch of its Off-Payroll Review on January 7th. The review follows the pre-election pledge made by Chancellor Javid in an interview with BBC’s Money Box on November 30th 2019. Although the announcement makes good on the government’s promise to address public concerns regarding this legislation, it has already received criticism from independent bodies representing the contracting sector.…READ MORE
BBC presenter Christa Ackroyd has lost her appeal against an IR35 ruling from February 2018. The Upper Tribunal upheld the First Tier Tribunal’s (FTT) ruling that Ackroyd was subject to an ultimate right of control from the BBC and was, therefore, an employee.…READ MORE
HMRC have issued a briefing on the reforms to the Off-Payroll working rules which will be introduced to the private sector next April. The briefing reiterates that the reforms, which will see the responsibility for IR35 assessments shift from the limited company contractor to the client engaging their services, are needed to improve compliance.…READ MORE
HMRC have published their guidance for clients and intermediaries in preparation for the April 2020 off-payroll changes. While the guidance seeks to clarify the new responsibilities for parties in the supply chain, there’s already been criticism from contractor bodies that the guidance is unclear and unsatisfactory.…READ MORE
Following the publication of their consultation, the government have released the Off-payroll Draft Legislation as part of the Finance Bill 2019-2020. The legislation will come into effect in both the public and private sectors from April 2020. Although the consultation sought to address concerns in several areas, the general consensus is that the resulting legislation does little to address these key issues, which are as follows:
- The definition of a small business for the purpose of exemption
- Non-compliance in the labour supply chain
- Clients making non-compliant blanket determinations/ NI deductions
- Giving workers and fee-payers an independent means of challenging status determinations made by client organisations.
Following on from the debate in Westminster last month, MPs are calling for the government to hold off on plans to extend the off-payroll rules to the private sector next year.
An Early Day Motion (EDM) has been tabled, calling for Government to delay any further implementation of the off-payroll rules in favour of exploring other options.…READ MORE
MPs have met in Westminster to debate the public sector rules and private sector proposals. Many spoke on behalf of contractors in their constituencies, giving insight into the impact of the rules on individuals and their businesses. Ged Killen MP said, “In many ways, the IR35 rules are a stopgap in the journey towards a statute book that supports 21st-century employment practices and the realities of modern workers’ lives.…READ MORE