HMRC
publishes secondary draft legislation for off-payroll reforms
HMRC has now published
draft secondary legislation for the off-payroll
working rules that are due to come into force in April this year.
In 2017,
HMRC introduced new off-payroll rules to the public sector, which saw some
contractors’ net income cut significantly. HMRC also shifted the responsibility
for compliance from individual contractors to public bodies or recruitment
agencies.
From 6 April
2020, the new tax rules will use the 2017 changes as a starting point for the extension
to medium and large organisations in the private sector. These reforms will
shift the responsibility for assessing employment status to the medium and
large organisations employing the individuals.
The new draft
legislation, open for consultation until 19 February 2020, includes details on
how the government plans to operate the transfer of debt obligations.
Earlier this
year the government launched a review of the upcoming changes, although it has
now been limited in scope.
Jesse Norman, the
Financial Secretary to the Treasury, said: ‘We recognise that concerns have
been raised about the forthcoming reforms to the off-payroll working rules. The
purpose of this consultation is to make sure that the implementation of these
changes in April is as smooth as possible.’