Serious concerns about the new off-payroll working rules for the private sector have been raised, according to an analysis of responses to HMRC’s consultation.
ContractorCalculator has published a summary of responses to HMRC’s ‘Off-Payroll working rules from April 2020’ consultation, which identify several flaws with its proposals. In particular, respondents warned about the damage that legislating these changes for April 2020 would cause the flexible workforce and UK plc.
The reoccurring issues and recommendations made by respondents to the consultation included: calls to halt reforms until April 2021; strong opposition to client-led disagreement process; calls for deemed employees to receive employment rights; HMRC’s Check Employment Status for Tax tool is not fit for purpose; widespread non-compliance with off-payroll rules in the public sector; and concerns over the timing in relation to Brexit.
“Our analysis has uncovered a host of practical and ethical issues with HMRC’s proposals for the private sector, and presents the most prominent feedback in a balanced manner,” highlights ContractorCalculator CEO Dave Chaplin.
“Following HMRC’s previous Off-Payroll summary of responses, we simply don’t trust the taxman to deliver an accurate representation of the feedback provided. Too often we have seen HMRC gloss over and blatantly ignore the concerns shared by respondents.”
Chaplin believes that these recent consultation responses show that HMRC has still not addressed many of the issues raised in the previous consultation that ran in September 2018.
“This summary makes it clear that HMRC has a lot of work to do before it can seriously consider extending the Off-Payroll rules to the private sector,” commented Chaplin. “Many have urged HMRC to take stock, instead of ploughing ahead with its ill-conceived plans.
“At the very least, a further postponement until April 2021 is needed to enable HMRC to attempt to fix the many flaws in its plans,” he said.
