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<p>The off-payroll working rules (sometimes known as IR35) have been in place since
2000. They ensure that individuals working like employees pay broadly the same amount
of tax and NICs, regardless of the structure they work through. They do not affect
the self-employed.</p><p> </p><p>In 2017 the Government reformed the way the rules
operate in the public sector to address widespread non-compliance. This shifted responsibility
for determining whether the rules apply from contractors to the bodies that engage
them. Evidence shows that compliance is improving without reducing the flexibility
of the labour market.</p><p> </p><p>Budget 2018 announced that the reform would be
extended to all sectors, but not until April 2020 in order to provide more time for
businesses to prepare. Small businesses have been excluded from the scope of the reform.</p><p>
</p><p>The change will improve compliance with the existing rules. Those who are compliant
will feel little impact.</p><p> </p><p>The Government has consulted extensively on
the reform. HMRC have published guidance on how businesses can prepare ahead of April
2020, and is rolling out an education and support programme to help organisations
make the right decisions.</p><p> </p><p>Information on the number of people within
scope of the off-payroll working rules is not held at constituency or regional level.</p>
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