In those circumstances, we expect them to use the reality. That is the kind of thing that we would check...”
Jim Harra also confirmed that HMRC has standing time to pay arrangements for the collection of debt, and that applies equally to debt in these cases. Where someone had a large unexpected tax bill that they did not have the means to pay straight away, HMRC would aim to agree a payment plan with them so that they could pay it over a period of time.
Jon Thompson stated that “We strike an agreement with 96% of those who ask for time to pay.”
The discussion on this particular topic ended with Jon Thompson saying: “ Let me put it clearly. We believe that we have invested significant resources to provide guidance and support specifically to the BBC throughout 2017-18 through their customer compliance manager. That is our position.”
The full script of the hearing is available on the UK Parliamentary website.
The CIPP run a half day course on Employment status and employment intermediaries which explains how to assess employment status, the financial risk of getting it wrong and the IR35 process changes for the public sector.
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Off-payroll working in the private sector 21 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.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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