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Updated Off-Payroll factsheet launched to help educate MPs voting on Finance Bill

ContractorCalculator has today published an updated Off-Payroll factsheet to educate MPs preparing to vote on the Finance Bill, with the aim of preventing a fallout that would severely compound already bleak conditions for UK plc.

Having been deferred by 12 months in light of the coronavirus pandemic, the Off-Payroll Tax was notably included in last week’s second reading of the Finance Bill. The decision defied recommendations published earlier that same day in a report by the House of Lords Finance Bill Sub-Committee, which called for a fundamental rethink of the exploitative legislation.

“The Off-Payroll Tax received severe and fully justified criticism in the Lords report. We’re hoping MPs will take on board the Lords’ recommendations when voting on whether to include the resolution in its current format in the Finance Bill,” says ContractorCalculator CEO Dave Chaplin.

“The findings of this lengthy inquiry, in addition to those from a number of recent studies and events, are neatly summarised in our latest factsheet. We hope this will help ensure MPs make a fully informed decision when voting, rather than blindly passing through damaging legislation that threatens to cripple an already depleted economy as it attempts to recover from the current crisis.”


New evidence renders Off-Payroll Tax untenable

In addition to a summary of findings gathered during, and conclusions drawn from, the Finance Bill Sub-Committee’s damning report, ContractorCalculator’s latest updated IR35 factsheet includes:

  • Findings from ContractorCalculator’s IR35 survey of over 12,000 contractors
  • Recent surveys conducted by inniAccounts and the Association of Independent Professionals and the Self-Employed (IPSE)
  • Insight into Off-Payroll’s impact on the UK’s defence and healthcare sectors
  • Analysis of HMRC’s dubious test data for its Check Employment Status for Tax (CEST) tool
  • Details of the latest IR35 tribunal activity
  • Further evidence of client non-compliance with the Off-Payroll Tax

“A lot has happened since we published the last Off-Payroll factsheet, especially in light of the evidence from the Lords inquiry, which served to reinforce the Off-Payroll Tax as simply untenable,” notes Chaplin. “We urge MPs to do what HMRC and Government have so far refused to and pay attention to the facts.

“Following the deferral, and especially considering the conclusions from the Lords report, there’s neither an urgent need nor any justification for the inclusion of the Off-Payroll Tax in this Finance Bill. Government has plenty of time to heed the Lords’ advice and conduct a comprehensive review of the legislation, prior to the next Finance Bill later in the year.”

Chaplin adds: “It seems ludicrous for Government to force through legislation that is knowingly flawed, chastised by the Finance Bill Sub-Committee, and opposed by a large group of its own MPs.”


Join the Stop the Off-Payroll Tax campaign

Though Government has once again signalled its intent to legislate the Off-Payroll Tax in the private sector, the fight is not over, and the wealth of evidence that has recently emerged is stacked heavily in favour of contractors.

To help capitalise on this, please support the Stop the Off-Payroll Tax campaign by signing up, contributing, and contacting your local MP. Many of the campaign’s objectives, such as securing a genuine review of IR35 and preventing the proliferation of ‘zero rights employment’, already have the support of the Finance Bill Sub-Committee. We just need the backing of more MPs.

Decisive action is urgently required. Play your part now to prevent irrevocable damage to the economy and preserve flexible working in the UK.

Published: 04 May 2020

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