Stop off-payroll working
10 July 2019
The Chartered Institute of Payroll Professionals (CIPP) has been made aware and asked to support, the current campaign to stop off-payroll working. Whilst the CIPP does not support this campaign, we should highlight that the current proposals bring an unacceptable level of complexity and administrative burden.
The CIPP does not support the campaign as we believe that all workers should be treated equally, whether employed or on a contract for services, and that all individuals should pay the same amount of National Insurance and tax contributions regardless of workers status. With the rules already in place for the public sector, the private sector should adopt the rules so that all workers are treated equally regardless of where their services are contracted.
This stance is fully supportive of flexible working practices, which we recognise as being vital to individuals and the UK economy. And, the CIPP strongly believes that determining employment status and improving the Check Employment Status for Tax (CEST) tool is key, and extending the rules to the private sector should not be introduced until these improvements have been made, with input from key stakeholders until the tool is fit for purpose. If this is not done in advance of the legislation coming into force from April 2020, the CIPP believes that, once again, measures are being brought in too quickly and employers will not have sufficient time to prepare.
The CIPP will continue to keep payroll professionals up to date through News Online and Payroll: need to know. In addition, there is a free webcast available to CIPP members through My CIPP and we cover off-payroll working as part of the employment status and modern working practices training course.