Off-payroll working in the private sector

20 May 2018

HMRC and HM Treasury have published a consultation which seeks views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.

Existing off-payroll working rules (IR35) were introduced in 2000 and are intended to stop individuals avoiding employment taxes by working through their own company.

In April 2017, the government reformed the off-payroll working rules for engagements in the public sector. Public authorities are now responsible for determining whether the rules apply and deducting and paying the appropriate taxes.

This consultation provides an early evaluation of the public sector reform and gauges the effectiveness of the April 2017 changes. It is accompanied by a useful factsheet which includes some rumour/fact information. External research on initial implementation shows that the reform has had relatively little impact on projects or vacancy filling in the public sector.

The consultation also provides options for changes to the off-payroll working rules for engagements in the private sector.

As well as responses on all options, the government is particularly interested to hear how the off-payroll working rules as they apply in the public sector could be adapted to fit the needs of the private sector, if appropriate.

The consultation will run until 10 August 2018.


CIPP comment

The Policy team will publish a survey in due course to gather your opinions on the options for change within the private sector.