Commons Sense

House of Commons · Ministers' Questions

Off-payroll Working Rules Review

Tuesday 11 February 2020 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • The review of off-payroll working rules was announced on 7 January 2020, with roundtables with stakeholders and public recommendations due by mid-February.
  • A small change has been made in the review process regarding concerns over blanket determinations by companies.
  • A review is ongoing to address issues and ensure smooth implementation of the off-payroll working rules changes.

Topics (select to filter)

Questions & Answers

Q1 Kate Green Lab
Employment
Context

A review of off-payroll working rules reform was announced, set to extend to medium and large-sized organisations from April 6th.

Question

What steps is he taking to review the implementation of changes to the off-payroll working rules; and if he will make a statement?

Answer from Jesse Norman

The review was announced on 7 January 2020, determining further implementation steps. Roundtables with stakeholders have been conducted, and recommendations will be made public by mid-February.

Answered
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Q2 Jessica Morden Lab Newport East
Employment
Context

Concerns exist that companies are making blanket determinations, forcing contractors into employee contracts without employment rights ahead of IR35 roll-out.

Question

With the roll-out of IR35 in the private sector fast approaching, there is already concern that companies are making blanket determinations, forcing genuine contractors into contracts that tax them as employees but with no employment rights. Ahead of the protest here tomorrow, will the Government listen, pause the process and work with the industry to do a proper review?

Answer from Jesse Norman

A small change has been made as part of the review. No evidence of blanket determinations, but challenges routes exist, including income tax self-assessment process submissions for final determination.

Partly answered

Not addressed: No commitment to pause or further review IR35 implementation

How: Under Review, Various Routes By Which Determinations Can Be Challenged

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Q3 Kate Green Lab
Taxation
Context

Contractors face uncertainty due to unclear HMRC guidance, CEST unreliability and firm cancellations of contracts.

Question

We all want to crack down on tax avoidance but legitimate contractors in my constituency face uncertainty about their status and tax liability thanks to unclear HMRC guidance and the unreliability of CEST—check employment status for tax—and the firms they work for are cancelling contracts because of the confusion. What is the Minister doing to address their concerns?

Answer from Jesse Norman

A review is being conducted to ensure smooth implementation, acknowledging difficulties and ongoing discussions for further consultation to address issues.

Partly answered

Not addressed: No specific measures announced to address contractor concerns directly

How: Reviewing, Acknowledging Difficulties

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Q4 Desmond Swayne Con New Forest West
Taxation
Context

The Economic Affairs Committee in the other place judged the 2010 legislation on the loan charge.

Question

Against how many of the pillars of taxation did the Economic Affairs Committee in the other place judge the 2010 legislation on the loan charge to have failed?

Answer from Jesse Norman

The right hon. Friend will have scrutinised Committee hearings and can answer on pillar numbers later; fundamental principle is proper tax collection from those who owe it to avoid avoidance.

Not addressed: Did not provide specific number of failed pillars or address the question asked directly

How: Referring To Future Discussions, Fundamental Principle Statement

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