The government has announced a review of the changes and implementation of its off-payroll working rules from April 2020, but industry specialists have expressed concern that the analysis will not result in any meaningful change. The Government however have confirmed the process is still due to go ahead.
In a recent announcement from the government, a review of changes to off-payroll working rules was announced and has been created to address concerns from businesses and affected individuals about the implementation of the changes and its effects. This is the IR35 legislation moving into the private sector and the changes to the current public sector model.
The review and consultations will conclude by mid-February and rather than review rules will focus on determining if anything can be done to ensure the successful implementation of the reforms and if any additional support is needed to ensure that the self-employed, who are not in scope of the rules, are not impacted.
The new rules if implemented as proposed in the draft legislation will mean responsibility for determining whether an engagement falls within the rules will move from the worker’s PSC to the business requiring the services – provided the organisation is defined as ‘medium’ or ‘large’ in the private sector similarly to the legislation brought in during 2017 for the public sector. The party which pays the PSC (or the fee payer) will then be required to operate PAYE and NICs.
Professional bodies and sector specialists have consistently called for a delay in the delivery of the rules due to the complexity of the legislation however the government have confirmed the want to push ahead on the current timetable.
As part of the review, the government will also carry out further assessment of the check employment status for tax tool (CEST) which has already seen an update at the end of 2019 and may see further changes before the april live date.
