Off-Payroll Working in the Private Sector – CIPP/CIPD response 13 August 2018
The CIPP policy team together with the CIPD have submitted a joint response to HM Revenue & Customs and HM Treasury with the findings from their research into proposals that if developed will expand the reach of off-payroll working in to the private sector.
To inform and evidence our response to this consultation, we have:
Published two joint surveys to our members and to the wider HR and payroll profession which ran throughout July and were aimed at:
• HR and payroll practitioners • HR and payroll contractors.
In addition to the surveys, the following face-to-face events were held to gather anecdotal evidence and views directly: • CIPD together with IPSE held a workshop of HR/payroll and non-HR/payroll contractors to gain their insights about the off-payroll proposals; and • CIPP together with representatives from HMRC held a roundtable to gather views of HR and payroll practitioners.
With thanks to all those who responded to our surveys and to those members who took part in these meetings.
Key findings from HR and payroll practitioners
• Over 69% of respondents currently employ the services of an individual/s via an intermediary such as a Personal Service Company • 59% of respondents currently have limited or no responsibility for determining IR35 status and a further 64% have limited or no responsibility for making payments to contractors captured as a result of an IR35 determination • 53% of respondents have little or no knowledge of the current rules of IR35 for contractors operating within the private and voluntary sectors • 42% of respondents know a fair amount or know well about the impact and operation of IR35 within the public sector • 79% of respondents don’t believe they have the capacity, knowledge or resources to deliver the preferred option in the Private and Third sectors. • Whilst 30% of respondents currently have yet to understand the impact that IR35 private sector reforms would have on them, 45% already know that they would need to expend resources to enlist the support of a third party organisation to assist in making an IR35 determination • 91% of respondents believe that they will need some level of support from HMRC to determine status with only 9% believing that they would need no support at all from HMRC • 69% of respondents will require written guidance and specialist knowledge from HMRC • 55% of respondents believe that a phased delivery of any reform is necessary to ensure widespread awareness and understanding of the ultimate implications • 82% of respondents have an expectation that contractor charges will increase and 86% have an expectation of increased ‘employer costs’ and workload (89%) as a result of reform (similar to that of the public sector) being rolled out to the Private and Third Sectors
Key findings from HR and payroll contractors
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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