The Government launched its off-payroll review on January 7th with regards to the implementation of the changes to the off-payroll working rules with the aim of ensuring a smooth implementation of the reforms. This dashes any hopes of a delay to the IR35 private sector rollout.
The review is looking to gather information from affected individuals and businesses so it can address any concerns raised. This review fulfils a commitment pledged by the Chancellor Sajid Javid in November 2019 on BBC’s Money Box (he begins talking about IR35 at the 6minute 30 second point in the programme).
Judging by the past 12 months or so, it is going have a lot of information and concerns to address before the reform is enforced on April 6th.
The review is due to be concluded by mid-February, which has been derided by many in the media as being no way near long enough to conduct a full review of a reform of this magnitude. Especially for a reform that affects so many people and could have such a devastating affect on the UK’s economy and make-up of the UK workforce.
IR35 concerns across many industries
The private sector IR35 reforms are causing a great deal of concern in industries, including; construction, offshore oil and gas, IT, and in the financial sector. Many organisations in these industries have already started to make significant changes to the structure of their workforce as a consequence.
The Government will be holding a series of discussions with representatives of those who will be affected by the reform. These include contractor groups, and medium to large businesses. These are expected to ensure the smooth implementation of the reforms, but surely the plans for implementation should already be in place and approved? After all, the deadline is only 3 months away.
On the Gov.uk website, it states that “The off-payroll working rules do not affect the self-employed, as only those working like employees are in scope. As part of the review, the Government will explore whether there are any further steps it could take to support businesses in correctly determining employment status.”
The determination of employment status is one that will rest with the end-client from April 6th, and is dependent on a number of key points, including; Supervision and control, Right of Substitution, Mutuality of Obligation (MOO), and how you are paid ie: weekly/monthly or on an ad-hoc invoice basis.
All of these points, and others, must be compliant with the off-payroll reform, be included in your contract, and more importantly, your day-to-day working practices must reflect them.
IR35 support is available
As well as the review, HMRC will continue to provide education and support activities to help customers prepare for the reform. These include 1:1 engagement, webinars, forums and workshops as well as targeted communications and customer support.
At Caunce O’Hara we offer insurance policies specifically designed to mitigate the affects of IR35, including; Tax Enquiry & Legal Expenses Insurance and IR35 Contract Reviews.
For information and a quote call 0333 321 1403 for click to build your quote online in minutes!