Consultation - off-payroll working in the private sector
The government consultation Off-payroll working in the private sector runs until 10 August 2018. It reviews and evaluates the effectiveness of the April 2017 changes to the off-payroll working rules in the public sector, as well as considering options to increase compliance in the private sector.
HMRC states that the consultation explores ‘how best to tackle the continuing non-compliance with the rules in the private sector, including:
setting out the existing challenges faced in conducting compliance activity for the off-payroll working rules in the private sector; and
considering options to improve compliance, including seeking views on a possible next step of extending the public sector reform to the private sector and if so, how it might be adapted if this approach was pursued.’
This consultation considers a number of potential options it states ‘for tackling the high and growing levels of non-compliance with the off-payroll working rules in the private sector.’ The options listed in many cases are dismissed with HMRC stating ‘This option is out of scope’.
Please discuss these potential changes with your clients and consider the impact the change could have on their business models, on productivity, on growth, on investment, on R&D, and also if they have any experience of IR35 in the public sector.