Consultation Articles

New enforcement body to protect workers

The government has committed to creating a new enforcement body to uphold vulnerable workers’ employment rights as part of the ‘Good Work Plan’.

Several existing organisations will be brought together for the new, single workers rights body. It will also be given new powers to deliver more effective protection for flexible workers, such as those working through umbrella companies.

Private Sector IR35 Consultation Responses Criticise Proposals

Respondents to HMRC’s consultation on proposed changes to IR35 rules in the private sector have highlighted a number of concerns about the plans.

Analysing consultation responses from a broad range of interest groups, ContractorCalculator found a number of recurring themes in the criticism. See article: https://www.contractorcalculator.co.uk/ir35_summary_responses_off_payroll_private_sector_551010_news.aspx

HMRC launched a consultation into off-payroll working rules in the private sector earlier this year. The planned reforms would affect limited company contractors working in the private sector from April 2020. 

Government seeks views on IR35 non-compliance in the private sector

The government wants to hear from you as part of an attempt to tackle IR35 non-compliance in the private sector.

It comes after changes to IR35 rules in the public sector caused problems public authorities and contractors

Also known as off-payroll working, IR35 rules are designed to stop employees working and paying taxes as if they were contractors.

The rules apply to contractors working through personal service companies who, if they were engaged directly by the company, would effectively be employees.

Budget 2017, IR35, Private sector, Consultation,
marketing | 24 November 2017
/ / /

The Autumn Budget delivered this week by Chancellor Philip Hammond was better than contractors than many had expected.

But it did include details about a consultation to extend dreaded public sector IR35 compliance rules over to the private sector.

This is a notoriously tricky subject, so we have produced a brief guide will all the information you need to know.

Following an independent review of the controversial loan charge, the Government has launched a consultation on how it can tackle the use of these arrangements.

The loan charge was applied to contractors that participated in so-called ‘disguised remuneration’ tax avoidance schemes. In many of these schemes, contractors were effectively paid using ‘loans’ which did not have to be repaid.

HMRC Launches Private Sector IR35 Consultation

HMRC has launched a fresh consultation on changes to off-payroll Intermediaries Legislation (IR35), due to take effect in the private sector from April 2020.

The changes would see reforms introduced in the public sector in 2017 extended to the private sector.

The change will affect contractors that operate through an intermediary like a limited company or personal service company (PSC).

Instead of judging their own IR35 status, the private sector organisation that engages the contract will make this decision. It could mean that more contractors are deemed ‘inside IR35’ and liable to  pay income tax and National Insurance contributions.

Private sector IR35 consultation expected soon

Last week, the Government’s Spring Statement warned that a consultation on extending IR35 off-payroll working reforms to the private sector could be due soon.

Off-payroll working didn’t make it into the Chancellor’s speech, but buried in a supplementary document the government did make mention of the rule changes.

The document says that “in the coming months,” the Government will publish “a consultation on how to tackle non-compliance in the private sector, drawing on experience of the public-sector reform.”

 

The Office of Tax Simplification has become the latest in a long line of organisations to criticise the government’s new IR35 proposals, which relate to contractors in the public sector.