In his 2018 Budget the Chancellor announced plans to roll out the public sector off-payroll working rules to the private sector. Mirroring the rules introduced to the public sector in 2017, the legislation would place the liability for deciding a worker’s employment status for tax with the end client.
In June, with member input, ACCA submitted our response to HMRC’s latest consultation on new rules for off-payroll working. Concerns raised included:
ACCA members using off-payroll workers were concerned about the continued availability of highly skilled workers for short-term, flexible projects.
Meanwhile, 96% of members that identified as off-payroll workers said they would have to increase their fee if an employment status determination required PAYE taxes to be deducted at source.
ACCA’s response recommended a delay till 2021, to ensure businesses have time to develop staff training and internal infrastructure; this is particularly important at a time when many businesses’ resources have already been stretched to cover contingency planning arising from Brexit uncertainty, changes to business reporting systems and resourcing pressures.