than ever, need to endorse and encourage the use of flexible working and developing niche skills in the economy. An immediate halt to the new rules in the private and public sector would be a great help.”
There are still many questions circulating regarding the issue of off payroll working reforms. Many professional bodies and individuals who will be affected by the changes assert that HMRC needs to publish guidance that is significantly clearer and more concise. This guidance needs to be universally accessible, understandable and free from complex jargon. There have been numerous recommendations for HMRC to amend the Check Employment Status for Tax (CEST) tool, and to include of a question that addresses mutuality of obligation, which does not currently appear. The fact that a general election is soon to take place has also prompted many to request at least a delay on the rollout of these changes to ensure that nothing is rushed, and everything is implemented correctly.
CIPP comment
The CIPP is offering both webinars and half-day training courses surrounding the topic of IR35 / off-payroll working. It is essential for businesses to acquaint themselves with details and guidance surrounding the reforms rapidly approaching in April 2020 so that they are fully prepared when it does arrive.
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IR35 advice – if it looks too good to be true, it probably is! 25 November 2019
The CIPP, with its responsibility to guide and lead the payroll profession, has noticed that there has been an increase in the number of umbrella companies approaching businesses ahead of the IR35 / off-payroll working rules that will be introduced in April 2020. This is a key topic at present, having received much attention and being placed at the centre of many discussions and debates. A growing number of contractors and their engagers are concerned about the effect that the new rules may have, which could potentially leave them vulnerable and open to suggestions that they would not normally consider. As when the legislation was introduced in the public sector, there has been a surge in umbrella companies approaching businesses and offering advice around maintaining the earnings levels of contractors and to keep employer liability charges low. Businesses should be wary of following any of this advice. There have been several reports of unscrupulous umbrella companies suggesting that contractors could be paid partially via payroll to satisfy the new laws, but then could have the remainder of their pay via a loan scheme. There are others who appear to be promoting travel and subsistence schemes. Within the payroll sphere, if anything appears too good to be true, then it more than likely is, and this is a sentiment that ripples through all aspects of payroll. Businesses should be cautious of entering into this type of arrangement and consider seeking legal advice if they are at all unsure.
CIPP comment
The CIPP is aware of the implications that the new IR35 reforms will have, both on contractors and their end engagers. To help individuals prepare, we are offering both a webinar and a half-day training course providing information on the topic. The next webinar is running on 9 December 2019 and the next available course is being held on 11 December 2019 in Manchester.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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