HMRC and the Treasury have published a consultation which seeks views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.
The Chartered Institute of Payroll Professionals (CIPP) said that existing off-payroll working rules (IR35) were introduced in 2000 and are intended to stop individuals avoiding employment taxes by working through their own company.
In April 2017, the government reformed the off-payroll working rules for engagements in the public sector. Public authorities are now responsible for determining whether the rules apply and deducting and paying the appropriate taxes.
The consultation provides an early evaluation of the public sector reform and gauges the effectiveness of the April 2017 changes. It also provides options for changes to the off-payroll working rules for engagements in the private sector.
However PRISM, a trade body and association made up of umbrella companies and employment intermediaries, has said the consultation raises questions on the timing and suitability of the implementation.
It said rather than questioning the logic of such a change and challenging the misleading summary and notes on the implementation in the public sector, many commentators seem resigned to the fact that this will happen and are now more concerned on the timings than the reality that such a change would bring.
The consultation will run until August 10 2018.