The government has launched a review into the new IR35 tax rules that are due to come into effect 6th April 2020.
You may be affected by these rules if you are:
- a worker who provides their services through their intermediary
- a client who receives services from a worker through their intermediary
- an agency providing workers’ services through their intermediary
The review officially launched on 7th January 2020. This is after being promised by Chancellor Sajid Javid in the run up to last year’s General Election. It will gather information from affected individuals and organisations. The government says it aims to address ‘concerns about how the IR35 rules will be implemented’.
Commenting on the review, Jesse Norman, Financial Secretary to the Treasury, 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.’
Use the Check employment status for tax service to help you decide if the off-payroll working rules apply.
The review is expected to be completed within six weeks. It will look at the rules that will make organisations responsible for assessing whether a contractor should be treated as a full-time employee.
Chief Executive of the Freelancer and Contractor Services Association (FCSA), Julia Kermode, said: ‘This seems to be another meaningless review from a government who seems intent on bulldozing ahead with its plans anyway.
‘They are expecting the review to be completed by mid-February, which is simply not long enough to consider the deeply complex range of issues that the off-payroll legislation is throwing up.’
“I think it is important that the government reviews the new rules and comes to a conclusion that works for everyone. People shouldn’t be able to abuse the system to avoid tax. However, contractors shouldn’t be penalised if they are trying to make an honest living.”Quote from Nigel Holland