Off-Payroll Worker Legislation (IR35) in the Private Sector

The Autumn budget statement by the Chancellor Philip Hammond (22nd November 2017) delivered some good news for those fearing that he would announce that the Off-Payroll worker legislation would be rolled-out to the Private sector.

There was great concern amongst many stakeholders that the Government would ignore all the lobbying and press ahead with the changes, even though there are many concerns about the way it has been implemented in the Public sector.

By name it was not mentioned in the Chancellors speech to the House of Commons, but it did appear in the Policy paper which was subsequently published.

“Off-payroll working in the private sector – The government reformed the off-payroll working rules (known as IR35) for engagements in the public sector in April 2017. Early indications are that public sector compliance is increasing as a result, and therefore a possible next step would be to extend the reforms to the private sector, to ensure individuals who effectively work as employees are taxed as employees even if they choose to structure their work through a company. It is right that the government take account of the needs of businesses and individuals who would implement any change. Therefore the government will carefully consult on how to tackle non-compliance in the private sector, drawing on the experience of the public sector reforms, including through external research already commissioned by the government and due to be published in 2018.”

There are no timescales as yet for this consultation nor any indication as to the form it will take. So, we will have to keep a watching brief to see what the next steps will be.

In the meantime, you may be interested in the recently published report from Arras People which looked at the Impact of IR35 in the Project Management Domain. The report can be accessed here

IR35

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