Off-Payroll ‘fact pack’ launched by ContractorCalculator

18 September 2018

ContractorCalculator has created a 32-page Off-Payroll ‘fact pack’ to arm contractors in their lobbying efforts against the public-sector reform and the proposed extension into the private sector.

The fact pack provides a comprehensive, evidence-based summary of the key points of contention regarding the new Off-Payroll tax. In their article, ContractorCalculator say that it includes HMRC’s misrepresentation of the impact on the public sector, and the taxman’s unsubstantiated and incomplete non-compliance statistics used to justify the proposed private sector rollout.


CEO Dave Chaplin comments: “HMRC is attempting to pull the wool over everyone’s eyes when it comes to the Off-Payroll tax, and some of the feedback that we and our readership have received from MPs suggests that it’s working.

We have created this fact pack in the hope that contractors will meet with their MPs and present them with the facts that show why the Off-Payroll tax is a proven disaster.”


The fact pack includes information such as:

  • Roughly 84% of perceived tax loss due to IR35 is by the hirer, not the contractor
  • Public sector costs have risen by at least 10% following Off-Payroll
  • Public sector changes intensified skills shortages and caused damage to projects
  • HMRC figures regarding non-compliance are incomplete
  • Off-Payroll has stoked use of tax avoidance schemes in the public sector
  • Thousands of public sector clients are conducting blanket IR35 assessments

You can read the full article from ContractorCalculator.


CIPP comment

The CIPP policy team together with the CIPD submitted a joint response to the consultation last month July which asked for views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.

Commenting on the response, Charles Cotton, senior CIPD adviser, performance and reward said:

“Based on what both payroll and HR practitioners and contractors have told us, the CIPD and CIPP strongly recommend that changes to the existing off-payroll working rules for engagements in the private sector will need to be implemented gradually to ensure that firms and the industry have enough time to amend their existing processes.”

In full agreement of the need to phase any changes in gradually and in recognition of the range of employer size and complexity within the Private Sector, Samantha Mann, CIPP senior policy and research officer highlighted:

“If the ‘preferred option’ is chosen [extending the public sector rules to the private sector] then HMRC will share significant resource challenges to deliver knowledgeable customer service across all service lines together with information and materials that recognise the differing needs of the increased IR35 customer base.

Our findings also confirm that whilst the CEST tool is largely seen to be an improvement on its predecessor, before further reform is considered, thorough user evidence research together with a review of how CEST operates and ideally through public consultation, should be carried out so as to increase the number of reliable determinations.”