Is a private sector roll out of "off-payroll rules for IR35" on the cards soon?
If you look at this page: https://www.gov.uk/guidance/check-employment-status-for-tax
You'll see a link at the bottom titled: "Apply the off-payroll working rules in the private sector", which leads here: https://www.gov.uk/guidance/ir35-find-out-if-it-applies
This page was updated on 7th July 2017, but used to look like this: https://web.archive.org/web/20170704232154/https://www.gov.uk/guidance/ir35-find-out-if-it-applies
What's changed?
"IR35" has been rebranded to "off-payroll working rules in the private sector".
There is however, no such thing. There currently are:
1. IR35 - Intermediaries legislation, and
2. Off Payroll legislation (Chapter 10 of IPETA) which applies ONLY to the public sector.
So, why has HMRC renamed IR35 to "off payroll working", you might wonder?
Further down the page you'll see there are two different sets of rules for applying off-payroll rules, depending upon which sector you are in - public or private.
Does anyone think, like me, that this is a gentle rewording whilst they start building momentum to align the rules for both sectors?
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7 年Good topic Dave I agree that most of the parts necessary to introduce off-payroll to the private sector are already done as shown in your comment below. HMRC state very clearly that they intend to introduce the same into the private sector and that they believe there are large amounts of tax payers money to be reclaimed from contractors. Whether that is true or not, they are easier to target than corporations who have an army of lawyers to defend them. Some of the poor practices/compliance carried out by a few, within the sector have made this even easier for HMRC.
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7 年Easy to go after the contractors. We still do not see anything from HMRC around huge corporations and their tax liability.
The steps are: 1. HMRC roll out IR35 reforms to public sector. [Done] 2. contractors jump ship, some rates go up - Government picks up the extra tax tab in some cases. [Done] 3. HMRC starts rebranding all contractors as "off payroll". [Done] 4. HMRC rebrands IR35 as "off payroll in the private sector". [Done] 5. HMRC provides 'proof' of extra tax receipts from step 1. 6. HMRC convinces MPs they can capture the c￡600m they've been chasing for years by "aligning the rules". 7. Roll out to private sector goes in Finance Bill 2018 (or 2019). 8. Private sector fights back, gets everyone compliant. It's a huge headache for everyone, and HMRC make nothing, and are back in unenforceable legislative land. Anyone want to bet against me?
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7 年I can't imagine why, given the totally blinkered thinking behind IR35, they wouldn't roll it out across the private sector. After all, as far as HMRC are concerned, it will generate increased payments to them.