Quick Poll response: Only 34% are ready for the off-payroll working reforms, due to be implemented from 6 April 2021

04 August 2020

It seems like no time at all since the main topic of discussion in the payroll sphere seemed to be the off-payroll working reforms, due to be implemented in the private sector from 6 April 2020. Even at Budget 2020, the Chancellor, Rishi Sunak, confirmed that the changes would take place as planned, but then a matter of days later the news broke that, due to coronavirus, the reforms would be halted, to instead take effect from 6 April 2021.

Many individuals and businesses are still appealing to the government to delay the reforms further, with others calling for them to be abolished completely. However, on 1 July 2020, the off-payroll working clause and schedule within the Finance Bill passed successfully through Report Stage in the House of Commons, and it is expected to receive Royal Assent shortly. This means that the changes will be implemented from 6 April 2021, and no further delay imposed.

In recognition of this, the CIPP’s Policy and Research team wanted to ask members how prepared they are for the off-payroll working reforms, and so hosted the question “How prepared are you for the off-payroll working reforms from April 2021?”

The answers were as follows:

Ready for the off-payroll working reforms: 34%

Not ready for the off-payroll working reforms: 17%

Starting to prepare for the off-payroll working reforms: 17%

Due to the outbreak of coronavirus, there will be no requirement to use off-payroll workers: 12%

Hoping that the reforms will be delayed again: 10%

Responding from the public sector, where the reforms have already been implemented: 10%

The responses highlight the fact that only 34% of companies are completely ready for the off-payroll working reforms, with some beginning to prepare for the changes but with others stating that they are not ready at all. April 2021 will come around quickly, so businesses should really begin to prepare now.

There are still individuals who are hoping that the reforms will be delayed once more, but due to the recent developments with the Finance Bill, that is looking more and more unlikely. Some businesses will no longer require the use of off-payroll workers due to the outbreak of coronavirus. Whilst 10% or responses came from the public sector where off payroll reform began in April 2017, they too will be impacted by further changes in April 2021.

 


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