The government has confirmed it is launching a review into the implementation of changes to the off-payroll working rules, which will address the concerns of businesses and individuals about how they will be brought into effect.
Known as IR35, off-payroll working rules were introduced at the turn of the century so that those working like an employee, but through a company, pays similar taxes to other employees.
It is hoped the review will determine any further steps required to guarantee successful implementation of reforms due to come into force in April.
Announced in the 2018 Budget, these reforms aim to tackle non-compliance with off-payroll working rules by ensuring medium and large organisations in the private and third sectors are responsible for determining the tax status of contractors.
The government’s review will also look at whether additional support is needed so that those who are self-employed and not in scope of the rules, aren’t impacted by April’s changes.
The announcement of this review fulfils a commitment by the Chancellor, Sajid Javid – made in November 2019 – and he said: “We recognise that concerns have been raised about the forthcoming reforms to the off-payroll working rules.
“The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible.”
A separate review is also to be launched to look at ways to support the self-employed, with suggestions such as improving access to finance and credit, making the tax system easier to navigate, and examining how better broadband can boost homeworking.
Affected individuals and businesses will be contacted as part of the review, to gather their experiences on implementation of reforms; it will be concluded before the end of February.
In the meantime, HMRC will continue to offer a programme of education and support to help businesses and individuals prepare for the reforms.