HMRC announces consultation on extending the ‘off payroll working’ rules to the private sector.

 The government reformed the off-payroll working rules (known as IR35) for engagements in the public sector in April 2017.

The Autumn Budget Report 2017 states that early indications show the rules have increased compliance. Not unexpectedly, the report states that 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.

This will come as no surprise to many who saw the private sector as the next target.

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’.

Article from ACCA In Practice