IR35 Forum minutes published 6 July 2018
HMRC have published the minutes from the IR35 Forum held on 10 May 2018.
The minutes recently published for the meeting held on 10 May 2018.
HMRC have also published a paper which seeks to clarify HMRC’s views on Mutuality of Obligation (MOO). This follows on from the Forum meeting of11 December where HMRC noted claims in contractor bulletins and at roundtable discussions, that MOO is omitted from the Check Employment Status for Tax (CEST) service. “CEST does not explicitly look at MOO, it is designed to determine whether an existing or future contract will be one of employment or self-employment. It is assumed that a person using CEST will have already established MOO, which is necessary for a contract to exist, otherwise there would be no need to be using CEST to determine the status of the existing or hypothetical contract. Some commentators in the press and some members of the forum have suggested this approach to MOO is flawed. HMRC has therefore provided it’s considered response to questions raised at the IR35 Forum regarding “mutuality of obligation” as part of the “irreducible minimum” of a contract of service.” The IR35 Forum is conducted in line with the published principles for the Employment and Payroll Group as set out in its terms of reference and has nominated one external member to attend the Employment and Payroll Group as its representative.
CIPP comment
The next meeting of the IR35 forum is scheduled for 30 August. If you have any agenda subjects that you would like to put forward to the CIPP Policy representative Samantha Mann, please email us by Monday 30 July 2018.
Thank you
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CIPD and CIPP joint survey on off-payroll in the private sector 25 July 2018
The CIPD in partnership with the CIPP has published two surveys aimed at HR and payroll practitioners on the impact of proposed changes to off-payroll rules in private and voluntary sectors. In May 2018, the government launched a consultation that proposes changes to who is responsible for determining the IR35 status of engagements. There are three proposals, but the preferred approach is to transfer from the contractor to the client organisation the responsibility for determining whether the off-payroll rules (IR35) apply to the engagement where an individual is providing their services through an intermediary - in a similar (if not identical) manner to the obligations placed on the Public Sector from April 2017. If it was determined that the off-payroll rules do apply, the engagement would then be subject to PAYE Income tax and Class 1 NICs as if it was one of employment. To understand how this change could impact on organisations operating in the private or voluntary sectors, the CIPD and CIPP are conducting a survey of HR and payroll practitioners working in these sectors. There are two surveys so depending on your role, please respond accordingly: 1. If you are a HR or payroll professional who is currently a contractor operating in the private and third sectors and you have been engaged in the past 12 months and work through a limited liability partnership or a limited company, please complete this survey. 2. If you are a HR or payroll practitioner whose employer uses contractors operating in the private and third sectors or you foresee that this proposal will impact your current payroll and HR processes, please complete this survey.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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