Government papers: Off-payroll working in the private sector
Off-payroll working rules known as IR35 were introduced in the year 2000. The rules are designed to ensure that those working through a personal service company (PSC) who would have been employees if they had been engaged directly, pay broadly the same tax as if they were employed. However, the government estimates that only 10 per cent of individuals working in this way apply the rules correctly.
The government has already reformed the rules for engagements in the public sector and is seeking to make similar changes in the private sector. Independent research into the change in the public sector revealed that organisations in this area have reduced their use of off-payroll contractors, while some have increased the hourly rate paid to contractors.
The consultation closes at 11:45pm on 10 August 2018. Responses can be emailed to [email protected].
