HMRC has just launched its latest IR35 consultation, with responses due by May 28th. The IIM will reply and if you would like to forward any comments or suggestions for our consideration, please respond by commenting to this item.
The paper introduction sets the scene:
“The government announced at Budget 2018 that to increase compliance with the existing off-payroll working rules in the private sector, businesses will become responsible for assessing the employment status of the off-payroll workers they engage. This will bring the private sector in line with the public sector.
As with the reform in the public sector, these changes seek to increase compliance in the private sector with rules that have been in place since 2000, to make sure that they operate as intended. The reform does not introduce a new tax.
The government has listened to the views put forward by stakeholders during the previous consultation. As a result, the smallest organisations will not have to determine the employment status of the off-payroll workers they engage.
The government recognises the importance of providing organisations with sufficient time to prepare for and implement the reform. That is why, having listened to respondents to the previous consultation, the government has decided that the reform will not come into effect until 6 April 2020, giving medium and large-sized businesses longer to prepare.
In addition, HMRC will continue to work with stakeholders, including tax experts and businesses to explore enhancements to the Check Employment Status for Tax (CEST) service and associated guidance. Any enhancements to CEST and associated guidance.”
Whether the government (HMRC) has listened or not remains to be seen. What they do with what they have heard will have a direct bearing on how we can conduct our business.
I urge you to engage with this matter. A good use of time will be to attend the upcoming IIM event on April 4th being held on IR35 and the implications post Spring Statement from the Chancellor of the Exchequer. Registration will be on the website over the next couple of days.