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1351465

registered interest
date	18/08/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact on contractors' ability to claim reasonable expenses of being classed as employees of umbrella personal service companies; and what the Government guidance is on the use of umbrella companies by public sector bodies.
tabling member constituency	Inverness, Nairn, Badenoch and Strathspey
tabling member printed	Drew Hendry
uin	40977
answer	answer is ministerial correction date of answer 06/09/2021 answer text <p>The Government introduced changes in April 2016 to bring people who work through employment intermediaries, including umbrella companies, into line with most workers who cannot claim tax relief for their ordinary commuting costs. Deemed employees can therefore claim tax relief on expenses, including overnight stays and business travel away from their usual place of work, in the same way as those employed directly.</p><p> </p><p>Deemed employees can also claim tax relief on expenses, including equipment, tools and professional fees in the same way as those employed directly. This means that they may be able to claim tax relief where expenses are needed to allow them to do their job and it is used exclusively for work purposes.</p><p> </p><p>HMRC have published advice on applying supply chain due diligence principles to assure labour supply chains including where an umbrella company is used by public sector bodies, which can be found on GOV.UK: <a href="https://www.gov.uk/government/publications/use-of-labour-providers/advice-on-applying-supply-chain-due-diligence-principles-to-assure-your-labour-supply-chains" target="_blank">https://www.gov.uk/government/publications/use-of-labour-providers/advice-on-applying-supply-chain-due-diligence-principles-to-assure-your-labour-supply-chains</a>.</p><p> </p><p>Under the off-payroll working rules, the fee-payer will become the deemed employer of the individual for tax and NICs purposes. However, the fee in relation to the engagement will still be paid to and received by the personal service company (PSC), albeit net of income tax and employee National Insurance contributions. Thus an individual’s PSC should still be able to use this income to meet such costs as pension payments.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 40978 question first answered 06/09/2021 15:10:44 answering member 3991 label Biography information for Jesse Norman
tabling member	4467 label Biography information for Drew Hendry

1351482

registered interest
date	18/08/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact of insolvency rules on contractors who use personal service companies and who remain eligible for costs, such as pension payments, but have no income in the event that contractors fee payers are classed as the contractors employer under IR35 rules.
tabling member constituency	Inverness, Nairn, Badenoch and Strathspey
tabling member printed	Drew Hendry
uin	40978
answer	answer is ministerial correction date of answer 06/09/2021 answer text <p>The Government introduced changes in April 2016 to bring people who work through employment intermediaries, including umbrella companies, into line with most workers who cannot claim tax relief for their ordinary commuting costs. Deemed employees can therefore claim tax relief on expenses, including overnight stays and business travel away from their usual place of work, in the same way as those employed directly.</p><p> </p><p>Deemed employees can also claim tax relief on expenses, including equipment, tools and professional fees in the same way as those employed directly. This means that they may be able to claim tax relief where expenses are needed to allow them to do their job and it is used exclusively for work purposes.</p><p> </p><p>HMRC have published advice on applying supply chain due diligence principles to assure labour supply chains including where an umbrella company is used by public sector bodies, which can be found on GOV.UK: <a href="https://www.gov.uk/government/publications/use-of-labour-providers/advice-on-applying-supply-chain-due-diligence-principles-to-assure-your-labour-supply-chains" target="_blank">https://www.gov.uk/government/publications/use-of-labour-providers/advice-on-applying-supply-chain-due-diligence-principles-to-assure-your-labour-supply-chains</a>.</p><p> </p><p>Under the off-payroll working rules, the fee-payer will become the deemed employer of the individual for tax and NICs purposes. However, the fee in relation to the engagement will still be paid to and received by the personal service company (PSC), albeit net of income tax and employee National Insurance contributions. Thus an individual’s PSC should still be able to use this income to meet such costs as pension payments.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 40977 question first answered 06/09/2021 15:10:44 answering member 3991 label Biography information for Jesse Norman
tabling member	4467 label Biography information for Drew Hendry

1329723

registered interest
date	04/06/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that the use of umbrella companies to employ contractors does not lead to a repeat of the IR35 disguised remuneration tax situation for those contractors employed through umbrella schemes.
tabling member constituency	Inverness, Nairn, Badenoch and Strathspey
tabling member printed	Drew Hendry
uin	10485
answer	answer is ministerial correction date of answer 09/06/2021 answer text <p>As a result of the changes to the off-payroll working rules some businesses are reconsidering whether Personal Service Companies are still the best way to engage contractors who are working like employees. Some will choose to engage contractors in a different way, such as through an agency or umbrella company. Most umbrella arrangements are set up and operated correctly, and comply with tax, National Insurance Contributions and National Minimum Wage legislation, but there are some that are not compliant. HMRC have published guidance for people working through umbrella companies, which can be found here:</p><p> </p><p><a href="https://www.gov.uk/guidance/working-through-an-umbrella-company" target="_blank">https://www.gov.uk/guidance/working-through-an-umbrella-company</a>.</p><p> </p><p>The Government remains committed to tackling those who promote disguised remuneration schemes, including through a package of measures to strengthen existing anti-avoidance regimes and tighten the rules designed to tackle promoters and enablers of tax avoidance schemes. These measures are being legislated for in the current Finance Bill.</p><p> </p><p>In addition, on 23 March 2021, the Government launched a consultation on a further package of measures to tackle promoters. These include ensuring HMRC can protect their position by securing or freezing a promoter’s assets so that the penalties they are liable for are paid, tackling offshore promoters and the UK entities that support them, closing down companies that continue to promote avoidance schemes and disqualifying the directors involved, and supporting taxpayers to identify and steer clear of avoidance schemes.</p><p>HMRC have launched a publicity campaign targeted at contractors to help them spot and steer clear of tax avoidance and HMRC have also proactively contacted 17,000 businesses highlighting the support available that they can share with contractors.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman question first answered 09/06/2021 14:58:26 answering member 3991 label Biography information for Jesse Norman
tabling member	4467 label Biography information for Drew Hendry

1307979

registered interest
date	12/04/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that end-clients administer IR35 status accurately for contractors in instances where contractors are working in a genuinely independent manner.
tabling member constituency	Waveney
tabling member printed	Peter Aldous
uin	179085
answer	answer is ministerial correction date of answer 20/04/2021 answer text <p>HMRC are continuing to help businesses get determinations right. HMRC set up dedicated teams to provide education and support to all businesses, public bodies and charities affected by the off-payroll working reform. This includes topic-based webinars, workshops as well as targeted one-to-one calls with affected businesses.</p><p>This is further supported by updated off-payroll working guidance, online learning and attendance at stakeholder events.</p><p> </p><p>HMRC have also outlined how they will support customers to comply with the changes to the off-payroll working rules: <a href="https://www.gov.uk/government/publications/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35" target="_blank">https://www.gov.uk/government/publications/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35</a>.</p><p> </p><p>HMRC developed the Check Employment Status for Tax (CEST) tool to help organisations and individuals determine employment status for tax and decide whether the off-payroll working rules apply.</p><p> </p><p>CEST is a free service which was developed working closely with tax specialists, contractors and other stakeholders. It was tested rigorously against known case law and settled cases, and HMRC stand by its results if the tool is used in accordance with HMRC's guidance.</p><p> </p><p>The Government has also ensured there is a client-led status disagreement process where contractors and deemed employers can lodge a complaint, if they disagree on how a contractor has been categorised.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman question first answered 20/04/2021 14:03:48 answering member 3991 label Biography information for Jesse Norman
tabling member	4069 label Biography information for Peter Aldous

1307981

registered interest
date	12/04/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, whether HMRC has made an assessment of the potential merits of updating its CEST tool used for determining employment status to account for Mutuality of Obligation in the determination of independent contract work.
tabling member constituency	Waveney
tabling member printed	Peter Aldous
uin	179086
answer	answer is ministerial correction date of answer 20/04/2021 answer text <p>‘Mutuality of obligation’ (MoO) is a term often used to describe the basic obligations that exist between a hirer and a worker. These basic obligations are where the hirer is obliged to pay remuneration, of any kind, and the worker is obliged to provide their work or skill in return.</p><p> </p><p>MoO is important because without it there can be no contract for the supply of a worker. CEST does account for MoO on these terms and is clear in guidance to users that it can only be used to determine employment status for tax where there is such a contract in place. CEST then considers this contract, testing the employment status factors, and determines whether the engagement is more likely to be employed or self-employed for Income Tax and National Insurance contributions purposes.</p><p> </p><p>After receiving feedback during user testing, HMRC provided a link to guidance on MoO on CEST’s landing page to make this understanding clearer to users of the tool. The guidance can be found on GOV.UK: <a href="https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm0543" target="_blank">https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm0543</a>.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman question first answered 20/04/2021 14:02:43 answering member 3991 label Biography information for Jesse Norman
tabling member	4069 label Biography information for Peter Aldous

1304924

registered interest
date	22/03/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the mental health of people who are the subject of IR35 investigations; and what guidance his Department has issued to HMRC staff and officials on taking steps to avoid the harassment and intimidation of people subject to those investigations.
tabling member constituency	Newcastle upon Tyne Central
tabling member printed	Chi Onwurah
uin	173021
answer	answer is ministerial correction date of answer 29/03/2021 answer text <p>The current off-payroll working rules, often known as IR35, have been in place for many years and apply to individuals working through an intermediary, such as a limited company, for clients outside the public sector. Under these rules it is the individual’s intermediary that is responsible for determining their employment status for tax, and paying the appropriate tax and NICs to HMRC. HMRC may conduct compliance checks on these determinations and amounts paid.</p><p> </p><p>All HMRC staff receive training required to perform their duties. This includes training for staff working with customers who require extra support, including supporting those with mental health conditions.</p><p> </p><p>From 6 April 2021, the changes to the off-payroll working rules shift responsibility for determining an individual's status from the individual's limited company to the client organisation engaging them. Any liabilities arising from the application of the reformed rules rest with client organisations or agencies in the labour supply chain.</p><p> </p><p>If the rules apply, it is these parties that are responsible for deducting income tax and employee National Insurance contributions before paying the individual’s intermediary for the individual’s services, as would be the case for actual employees or agency workers</p><p> </p><p>HMRC have outlined how they will support taxpayers in complying with the changes to the off-payroll working rules: <a href="https://www.gov.uk/government/publications/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35" target="_blank">https://www.gov.uk/government/publications/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35</a>.</p><p> </p><p>Where individuals are engaged by small client organisations outside the public sector, their intermediary will still be required to determine their status following the changes to the rules. HMRC’s compliance checks on these determinations will continue to be carried out by staff who have been trained to perform their duties, including where customers require extra support.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman question first answered 29/03/2021 12:37:44 answering member 3991 label Biography information for Jesse Norman
tabling member	4124 label Biography information for Chi Onwurah

1303981

registered interest
date	18/03/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) client businesses and (b) contractors working through personal service companies who will be affected by changes to IR35 from 6 April 2021.
tabling member constituency	Erith and Thamesmead
tabling member printed	Abena Oppong-Asare
uin	171748
answer	answer is ministerial correction date of answer 23/03/2021 answer text <p>The changes to the off-payroll working rules come into effect on 6 April 2021 and were legislated for in Finance Act 2020. The off-payroll working rules have been in place for over 20 years and are designed to ensure that individuals working like employees but through their own limited company, usually a personal service company or PSC, pay broadly the same Income Tax and National Insurance contributions as those who are directly employed.</p><p> </p><p>The off-payroll working changes shift responsibility for determining an individual's status from the individual's limited company to the client organisation engaging them. The Government has legislated to ensure there is a client-led status disagreement process where contractors can lodge a complaint, if they disagree on how they have been categorised under the off-payroll working rules.</p><p> </p><p>The Tax Information and Impact Note published at Spring Budget 2021 sets out that the reform is expected to affect about 60,000 client organisations and 180,000 individuals working through their own limited companies.</p><p>The additional revenue estimated to be raised by the reform is approximately £3.8bn over the tax years 2020/21 to 2025/26.</p><p> </p><p>The off-payroll working rules do not prevent anyone from continuing to work through a limited company, or require individuals to move into employment. However, the Government is aware that some businesses will reconsider whether PSCs are still the best way to engage individuals who are working like employees. Some contractors will provide their services in a different way, such as through an agency or umbrella company, and some organisations may offer individuals permanent roles instead, where that suits their business needs. These are commercial decisions, and individuals also have a decision about whether to accept the terms and conditions on offer to them.</p><p> </p><p>The reform was originally announced at Budget 2018. Many businesses would have been prepared for the reform to be implemented in April 2020 as originally planned. HMRC have undertaken a significant programme of education and support to ensure that large and medium-sized businesses are ready to implement the reform. This includes a series of webinars viewed over 19,000 times since October 2020 as well as more targeted bespoke support, such as one-to-one calls and workshops with sectors and customer groups where the reform is expected to have the most impact. HMRC have also worked with representative bodies in specific sectors to reach those customers. For those customers who still require further assistance, HMRC have a dedicated helpline to provide assistance with queries related to the off-payroll working rules.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 171749 171750 171751 171752 question first answered 23/03/2021 14:54:49 answering member 3991 label Biography information for Jesse Norman
tabling member	4820 label Biography information for Abena Oppong-Asare

1303982

registered interest
date	18/03/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment he has made of business preparedness for implementing changes to IR35 from 6 April 2021.
tabling member constituency	Erith and Thamesmead
tabling member printed	Abena Oppong-Asare
uin	171749
answer	answer is ministerial correction date of answer 23/03/2021 answer text <p>The changes to the off-payroll working rules come into effect on 6 April 2021 and were legislated for in Finance Act 2020. The off-payroll working rules have been in place for over 20 years and are designed to ensure that individuals working like employees but through their own limited company, usually a personal service company or PSC, pay broadly the same Income Tax and National Insurance contributions as those who are directly employed.</p><p> </p><p>The off-payroll working changes shift responsibility for determining an individual's status from the individual's limited company to the client organisation engaging them. The Government has legislated to ensure there is a client-led status disagreement process where contractors can lodge a complaint, if they disagree on how they have been categorised under the off-payroll working rules.</p><p> </p><p>The Tax Information and Impact Note published at Spring Budget 2021 sets out that the reform is expected to affect about 60,000 client organisations and 180,000 individuals working through their own limited companies.</p><p>The additional revenue estimated to be raised by the reform is approximately £3.8bn over the tax years 2020/21 to 2025/26.</p><p> </p><p>The off-payroll working rules do not prevent anyone from continuing to work through a limited company, or require individuals to move into employment. However, the Government is aware that some businesses will reconsider whether PSCs are still the best way to engage individuals who are working like employees. Some contractors will provide their services in a different way, such as through an agency or umbrella company, and some organisations may offer individuals permanent roles instead, where that suits their business needs. These are commercial decisions, and individuals also have a decision about whether to accept the terms and conditions on offer to them.</p><p> </p><p>The reform was originally announced at Budget 2018. Many businesses would have been prepared for the reform to be implemented in April 2020 as originally planned. HMRC have undertaken a significant programme of education and support to ensure that large and medium-sized businesses are ready to implement the reform. This includes a series of webinars viewed over 19,000 times since October 2020 as well as more targeted bespoke support, such as one-to-one calls and workshops with sectors and customer groups where the reform is expected to have the most impact. HMRC have also worked with representative bodies in specific sectors to reach those customers. For those customers who still require further assistance, HMRC have a dedicated helpline to provide assistance with queries related to the off-payroll working rules.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 171748 171750 171751 171752 question first answered 23/03/2021 14:54:49 answering member 3991 label Biography information for Jesse Norman
tabling member	4820 label Biography information for Abena Oppong-Asare

1303983

registered interest
date	18/03/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what estimate he has made of additional revenue to the Exchequer that will be raised by changes to IR35 from 6 April 2021..
tabling member constituency	Erith and Thamesmead
tabling member printed	Abena Oppong-Asare
uin	171750
answer	answer is ministerial correction date of answer 23/03/2021 answer text <p>The changes to the off-payroll working rules come into effect on 6 April 2021 and were legislated for in Finance Act 2020. The off-payroll working rules have been in place for over 20 years and are designed to ensure that individuals working like employees but through their own limited company, usually a personal service company or PSC, pay broadly the same Income Tax and National Insurance contributions as those who are directly employed.</p><p> </p><p>The off-payroll working changes shift responsibility for determining an individual's status from the individual's limited company to the client organisation engaging them. The Government has legislated to ensure there is a client-led status disagreement process where contractors can lodge a complaint, if they disagree on how they have been categorised under the off-payroll working rules.</p><p> </p><p>The Tax Information and Impact Note published at Spring Budget 2021 sets out that the reform is expected to affect about 60,000 client organisations and 180,000 individuals working through their own limited companies.</p><p>The additional revenue estimated to be raised by the reform is approximately £3.8bn over the tax years 2020/21 to 2025/26.</p><p> </p><p>The off-payroll working rules do not prevent anyone from continuing to work through a limited company, or require individuals to move into employment. However, the Government is aware that some businesses will reconsider whether PSCs are still the best way to engage individuals who are working like employees. Some contractors will provide their services in a different way, such as through an agency or umbrella company, and some organisations may offer individuals permanent roles instead, where that suits their business needs. These are commercial decisions, and individuals also have a decision about whether to accept the terms and conditions on offer to them.</p><p> </p><p>The reform was originally announced at Budget 2018. Many businesses would have been prepared for the reform to be implemented in April 2020 as originally planned. HMRC have undertaken a significant programme of education and support to ensure that large and medium-sized businesses are ready to implement the reform. This includes a series of webinars viewed over 19,000 times since October 2020 as well as more targeted bespoke support, such as one-to-one calls and workshops with sectors and customer groups where the reform is expected to have the most impact. HMRC have also worked with representative bodies in specific sectors to reach those customers. For those customers who still require further assistance, HMRC have a dedicated helpline to provide assistance with queries related to the off-payroll working rules.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 171748 171749 171751 171752 question first answered 23/03/2021 14:54:49 answering member 3991 label Biography information for Jesse Norman
tabling member	4820 label Biography information for Abena Oppong-Asare

1303984

registered interest
date	18/03/2021
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Off-payroll Working
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what provision there will be for a contractor to challenge an IR35 decision about their employment status made by a business after 6 April 6 2021.
tabling member constituency	Erith and Thamesmead
tabling member printed	Abena Oppong-Asare
uin	171751
answer	answer is ministerial correction date of answer 23/03/2021 answer text <p>The changes to the off-payroll working rules come into effect on 6 April 2021 and were legislated for in Finance Act 2020. The off-payroll working rules have been in place for over 20 years and are designed to ensure that individuals working like employees but through their own limited company, usually a personal service company or PSC, pay broadly the same Income Tax and National Insurance contributions as those who are directly employed.</p><p> </p><p>The off-payroll working changes shift responsibility for determining an individual's status from the individual's limited company to the client organisation engaging them. The Government has legislated to ensure there is a client-led status disagreement process where contractors can lodge a complaint, if they disagree on how they have been categorised under the off-payroll working rules.</p><p> </p><p>The Tax Information and Impact Note published at Spring Budget 2021 sets out that the reform is expected to affect about 60,000 client organisations and 180,000 individuals working through their own limited companies.</p><p>The additional revenue estimated to be raised by the reform is approximately £3.8bn over the tax years 2020/21 to 2025/26.</p><p> </p><p>The off-payroll working rules do not prevent anyone from continuing to work through a limited company, or require individuals to move into employment. However, the Government is aware that some businesses will reconsider whether PSCs are still the best way to engage individuals who are working like employees. Some contractors will provide their services in a different way, such as through an agency or umbrella company, and some organisations may offer individuals permanent roles instead, where that suits their business needs. These are commercial decisions, and individuals also have a decision about whether to accept the terms and conditions on offer to them.</p><p> </p><p>The reform was originally announced at Budget 2018. Many businesses would have been prepared for the reform to be implemented in April 2020 as originally planned. HMRC have undertaken a significant programme of education and support to ensure that large and medium-sized businesses are ready to implement the reform. This includes a series of webinars viewed over 19,000 times since October 2020 as well as more targeted bespoke support, such as one-to-one calls and workshops with sectors and customer groups where the reform is expected to have the most impact. HMRC have also worked with representative bodies in specific sectors to reach those customers. For those customers who still require further assistance, HMRC have a dedicated helpline to provide assistance with queries related to the off-payroll working rules.</p> answering member constituency Hereford and South Herefordshire answering member printed Jesse Norman grouped question UIN 171748 171749 171750 171752 question first answered 23/03/2021 14:54:50 answering member 3991 label Biography information for Jesse Norman
tabling member	4820 label Biography information for Abena Oppong-Asare