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Updated Off-Payroll factsheet launched to help educate the private sector

ContractorCalculator published its updated Off-Payroll factsheet today to help educate the private sector as it braces for the proposed April 2020 extension of the rules.

The latest iteration follows the publication of ContractorCalculator’s summary of responses to HMRC’s ‘Off-Payroll working rules from April 2020’ consultation. It contains results from the latest studies shared by respondents in their feedback.

“Inevitably, this updated factsheet doesn’t paint a positive picture of the Off-Payroll rules, as all of the information collated from industry experts has been contrary to HMRC’s rose-tinted perspective of the reform,” highlights ContractorCalculator CEO Dave Chaplin.

“HMRC’s failure to even attempt to resolve multiple pre-existing issues with Off-Payroll, evidenced by numerous studies and news items, is strong justification for a delay to the proposed rollout.”

DOWNLOAD - Off-Payroll (IR35) Factsheet

New evidence strengthens case against Off-Payroll rules

In addition to a broad body of evidence encompassing findings from the likes of the Association of Professional Staffing Companies (APSCo), Qdos Contractor, Harvey Nash, and HMRC’s own commissioned study, the updated factsheet includes:

  • A study of medium and large contractor clients by Brookson
  • New findings from the Freelancer and Contractor Services Association
  • Findings from a survey of Association of Chartered Certified Accountants (ACCA) members
  • Detailed analysis of responses to HMRC’s latest consultation
  • Latest investigative journalism items from ContractorCalculator.

“A lot has happened since we published the last Off-Payroll factsheet and the case against the Off-Payroll rules is now stronger than ever,” says Chaplin. “While new evidence has continued to surface, HMRC’s position has also weakened as a result of multiple tribunal defeats, all of which are documented in the latest release. It’s astounding that the taxman continues to regard the wealth of evidence as merely ‘anecdotal’.”

DOWNLOAD - Off-Payroll (IR35) Factsheet

Factsheet to raise awareness of flawed private sector plans

The factsheet aims to raise awareness within the private sector of the Off-Payroll rules, their compliance requirements, and the issues derived from the flawed public sector implementation. But, Chaplin warns that considerable flaws in the latest proposals leave organisations vulnerable and ill-equipped to manage compliance, regardless of how informed they are:

“Proposals by HMRC to impose tax liability risk on compliance parties and have clients mediate their own contractor appeals processes show that we are a long way from a workable solution. It’s no surprise that consultation respondents unanimously called for a further delay to the private sector plans.

“We implore Government to rethink these illogical proposals, which risk irreconcilable damage to the UK flexible workforce. However, if the Off-Payroll rules are to go ahead, it’s the very least we can do to warn those affected of dangers posed and the importance of compliance.”

Join our Stop The Off-Payroll Tax campaign - lobby your MP

To support the campaign against IR35 changes, please register your interest, and help raise awareness by following the instructions set out on our IR35 campaign pages. Please follow or connect with our CEO Dave Chaplin on LinkedIn. Dave regularly posts about the IR35 reforms and is an essential contact to have for keeping abreast of the latest news surrounding the legislation.

Meetings with MPs are essential. We have prepared a briefing pack to assist you with your meeting. Just email your MP name to us on campaign@contractorcalculator.co.uk and we will send you the information. Then you simply prepare, and meet your MP for 30 minutes.

The need for decisive action is now urgent, as draft legislation is due next month.

Published: Wednesday, 19 June 2019

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