Reported in the Daily telegraph, the House of Lords is to launch a probe into the ‘off payroll’ tax reforms (IR35) scheduled to be launched in April.
The House of Lords’ Economic Affairs Committee will scrutinise the impact of planned changes to the IR35 regime before they come into force in April. The inquiry will consider the impact of the rule change, which will shift the responsibility of determining who is a genuine contractor and who is a full-time employee from the individual to the employer.
Dave Chaplin of Contractor Calculator and the Stop the Off-Payroll Tax campaign group has said the policy change is ill-conceived and destroying the freelance sector. Julie Kermode of the Freelance and Contractor Services Association expressed concern that: “The Treasury simply cannot deny the mounting evidence of the damage the off-payroll roll-out will do, with many contractors being laid off and with projects lost to other countries.”
You can look directly at the select committee activity here where the call for evidence is given.
Lord Forsyth of Drumlean, Chair of the Finance Bill Sub-Committee, said: “The Government is proposing to extend the off-payroll working rules to large and medium-sized organisations in the private sector. We are interested in how this change will work in practice and how it relates to wider changes in working arrangements.”
“To inform our work we want to hear from as broad a range of people and organisations as possible. If you have a view on off-payroll working rules, please let us know what you think.”
If members have specific situations that they are willing to share, please mail firstname.lastname@example.org – with sufficient response, the IIM will respond directly on the matter to the committee on behalf of all members. The best information will include:
1 . Where you contract
2. What the clients are doing.
3. The impact on you
4. The impact on the firm.
5. The likely damage to all parties.
In the meantime, why not sign up to the IIM event hosted by Interim Partners on February 26th and featuring Paystream Accountancy Services to establish a smarter way to navigate IR35? It’s here.