• Plans to enhance CEST • How non-compliance will be dealt with
HMRC did confirm that its aim is to publish draft guidance alongside the draft legislation in the summer.
The minutes and associated documents are all available to view on the IR35 Forum page on GOV.UK.
CIPP comment The CIPP is a member of the IR35 Forum and Samantha Mann, senior policy & research officer, will be attending the next meeting which takes place on 28 February. If you have anything you would like raised at the forum, please email policy using IR35 as the subject.
Background to the Forum
The IR35 Forum is a group of external stakeholders who meet regularly with HM Revenue and Customs (HMRC). It was established following the government’s commitment at Budget 2011 to make clear improvements to the way IR35 is administered. This followed the publication of the Office of Tax Simplification’s review of Small Business Tax. The members of the IR35 Forum include taxpayer representatives and professional advisers with expert knowledge and experience of how the legislation operates in practice and how it affects key taxpayer groups. The IR35 Forum meets quarterly.
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Consultation on off-payroll working rules in private sector from April 2020 6 March 2019
The next stage of consultation has been published on how best to implement the reform to the off-payroll working rules for engagements in the private sector.
Following the announced that the reform to the off-payroll working rules introduced for engagements in the public sector in April 2017 will be extended to the private sector from 6 April 2020, HMRC published a consultation in May 2018 seeking views on how best to address non-compliance with the off-payroll working rules in the private sector. The CIPP ran a joint survey with the CIPD – our consultation response was published in August 2018. The government published a summary of all its responses and a fact sheet in October 2018. The reform means that from April 2020, where an individual is engaged by a medium or large-sized business and works through an intermediary, the engaging business will become responsible for assessing the individual’s employment status. If the rules apply, the business, agency or third party paying the individual’s company will be responsible for deducting income tax and NICs through PAYE, as for employees, and paying employer NICs. This next stage of consultation seeks to ensure the proposed processes are suitable for the large and diverse private sector as well as engagers in the public sector already applying the rules. The consultation asks for views and information on a number of subjects, including: • the scope of the reform and impact on non-corporate engagers • information requirements for engagers, fee-payers and personal service companies • addressing status determination disagreements. The government understands that many organisations will be keen to begin preparations and has therefore included in the education and support section of the consultation actions that affected organisations can take now to prepare for the reform.
Small companies are out with the scope of the reform and the government intends to use the existing statutory definition within the Companies Act (s.382) to determine whether or not a corporate client is small.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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