Off-payroll Working Rules Review 2020-02-11
2020-02-11
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
A review of off-payroll working rules reform was announced, set to extend to medium and large-sized organisations from April 6th.
What steps is he taking to review the implementation of changes to the off-payroll working rules; and if he will make a statement?
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.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
Concerns exist that companies are making blanket determinations, forcing contractors into employee contracts without employment rights ahead of IR35 roll-out.
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?
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.
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Assessment & feedback
No commitment to pause or further review IR35 implementation
Under Review
Various Routes By Which Determinations Can Be Challenged
Response accuracy
Q3
Partial Answer
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Context
Contractors face uncertainty due to unclear HMRC guidance, CEST unreliability and firm cancellations of contracts.
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?
A review is being conducted to ensure smooth implementation, acknowledging difficulties and ongoing discussions for further consultation to address issues.
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Assessment & feedback
No specific measures announced to address contractor concerns directly
Reviewing
Acknowledging Difficulties
Response accuracy
Q4
Partial Answer
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Context
The Economic Affairs Committee in the other place judged the 2010 legislation on the loan charge.
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?
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.
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Assessment & feedback
Did not provide specific number of failed pillars or address the question asked directly
Referring To Future Discussions
Fundamental Principle Statement
Response accuracy