The House of Lords Finance Bill sub-committee has launched a new call for evidence into the implementation of the off-payroll rules in the private sector and how they are working in practice.
This short follow up enquiry follows the committee’s April 2020 review and report ‘Off-Payroll Working: treating people fairly’, which considered proposals to move responsibility for assessing compliance within the Off-Payroll Working rules from contractors to those who engage them. The review concluded that the rules are flawed and the government should re-think tax and employment status but it was cut short due to the pandemic as well which also led to a twelve-month delay in introducing the rules to the private sector.
The sub-committee is now interested in hearing about the experiences of those businesses where contractors are ultimately working for the engagers and the contractors themselves, with regards to how the rules have been working in practice since their introduction in April 2021.
They are seeking views on the following:
Written responses are requested by Monday 15 November 2021 and should be made online here. Submissions should be short, concise and of no more than six pages and respondents will be contacted to confirm whether their submission has been accepted as evidence.
Useful guides on this topic
Personal Service Companies (PSC) tax
A Personal Service Company (PSC) derives its income from the activities of one individual. It is also a close company for tax purposes.
IR35: Off-Payroll Working
The IR35 tax rules apply when a worker supplies his personal services through an intermediary trading vehicle such as a company or partnership to an end client.
Off-Payroll Working: PSCs & Private Sector Engagers
The Off-Payroll Working rules only apply in cases where, if you worked directly for the end client you would be deemed to be its employee in terms of the employment status tests.
Employment status & detailed checklist
The employment status of an individual worker depends on whether the individual is engaged by the engager under a 'contract of service', or a 'contract for services'.
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