HMRC issue disappointing briefing notes on Off-Payroll Working rules
28 October 2019
HMRC have issued new briefing notes on the amendment to the Off-Payroll Working rules (IR35) set to come into play April 2020. The notes follow on from the guidance released earlier this year.
- HMRC estimate that only one in ten of those who should be paying tax under the current off-payroll working rules do.
- It has been assessed that the £3 billion in corrected revenue the extension will bring in will aid public services, such as the NHS, over the next 4 years.
- HMRC will only use the resultant information from the change to open enquiries into the past if fraud or criminal behaviour is suspected, although there is no definition of this.
- Further guidance on the details of IR35 are planned to be published by the end of the year.
- HMRC also state that an enhanced version of the CEST tool will be launched before the end of the year.
- They claim to have worked with more than 300 stakeholders to “make the tool clearer, reduce user error and consider more detailed information” and suggest that, to date, the tool has provided a determination in at least 85% of uses.
- HMRC plan to provide detailed help and guidance, including one-to-one support from specialist advisers on their helpline.
See the full briefing notes here.
Aspire Comment
These briefing notes fail to highlight anything that we didn’t already know about the amendment to IR35. The question remains: can an online tool accurately categorise something as complex as a person’s employment status? Nevertheless, it is reassuring to know that HMRC will stand by the result unless there is evidence of a contrivance or false information found in an inspection.
With our training facilities here at Seneca House, Aspire can offer an IR35 seminar to ensure you are aware of the implications that the extension to the off-payroll working rules will have on your company, your clients and your suppliers. Get in touch today on 0121 445 6178 to speak with one of our advisors.