The Govt has launched a review of changes to off-payroll working rules (often referred to as IR35) following concerns over the chances of a successful implementation from April 2020.
IR35 rules were introduced in 2000 to ensure that someone working like an employee, but through a company, pays similar taxes to other employees. The reforms planned from April 2020 make private medium and large organisations responsible for determining the status of contractors. Public sector organisations have had this responsibility since 2017.
The review is due to conclude mid-February.
Craig Simpson, tax partner at Bates Weston comments:
“HMRC have given themselves a very tight deadline to review the off-payroll worker rules due to come into force on 6 April 2020. Whilst a review is welcome to ensure a smooth transition to the new regime there must be some doubt as to the benefit of the review and implementing any major changes prior to 6 April 2020.”