Last week, HMRC launched the IR35 consultation, a consultation that is exploring the extension of the reforms on off-payroll works into the private sector. Currently, the IR35 reforms – an anti-avoidance tax legislation designed to challenge the tax paid by contractors involved in off-payroll working – only affect those in the public sector. Typically affected would be IT contractors, Medical professionals working through personal companies etc.
HMRC have estimated that “only 10% of individuals working in this way apply the rules property, costing the Exchequer hundreds of millions of pounds in lost tax revenues every year”, prompting the consultation to take place in the private sector. This could affect many of those working as contracting consultants but could also affect all those working through a personal service company.
In the 2017 Autumn Budget, the IR35 forum’s minutes announced that consultations will take place in 2018. On 18 May 2018, this consultation began, in an attempt to evaluate the success of the current public sector reforms and how non-compliance can be effectively challenged in the private sector.
This consultation closes on 10 August 2018. You can find out more here >> https://www.gov.uk/government/consultations/off-payroll-working-in-the-private-sector
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