The government has launched a review into the implementation of changes to the off-payroll working rules which are due to be extended to the private sector from 6 April.
The review is intended to address concerns from businesses and affected individuals and is due to be completed by mid-February. The government will:
- Gather evidence from affected individuals and businesses, by conducting a series of roundtable meetings, to attempt to ensure smooth implementation of the reforms. It will also assess whether any additional support is needed to ensure that the genuinely self-employed are not impacted.
- Carry out further internal analysis, including evaluation of the CEST (check employment status for tax) tool and public sector bodies' experience of implementing the reform to the off-payroll working rules in 2017.
- Determine if any further steps can be taken to ensure the smooth and successful implementation of the reforms.
On 22 January 2020, HMRC published a technical note and draft secondary legislation on extending IR35 to the private sector for consultation. The closing date for responding is 19 February 2020. The draft Income Tax (Pay as You Earn) (Amendment) Regulations 2020 and the draft Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 will come into force on 6 April and accompany the primary legislation on the measure that is to be included in the Finance Bill 2020.
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