The changes to the rules governing off payroll working (IR35) in the private sector - due to take effect in April 2020 - took up ever increasing amounts of media attention during the course of 2019. As reported widely at the time, HSBC took the decision to ban the use of contractors in light of the pending legislation in May 2019, then Barclays, Lloyds and RBS followed suit. It is not just the banks that are taking a risk averse approach to the new legislation, other companies such as GlaxoSmithKline will also reportedly no longer be hiring contractors. Then in the run up to the General Election all of the main political parties pledged to review the proposed IR35 changes prior to their implementation early this year.
The UK Government has now launched a review that will focus on the implementation of the new rules, which are designed to tackle non compliance by making medium and large organisations in the private and third sectors responsible for determining the tax status of contractors.
The review is to determine if any further steps can be taken to ensure a smooth implementation of the rules. This will be done by gathering evidence from individuals and businesses, including a series of roundtables with those who are affected. It is intended to conclude the review by mid-February.
For further information on the new rules please see Elise Turner's recent blog Changes to off-payroll working rules - IR35.
