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<p>The off-payroll working rules (sometimes known as IR35) have been in place since
2000. They are designed to ensure that individuals working like employees pay broadly
the same amount of tax and National Insurance Contributions, regardless of the structure
they work through. They do not affect the self-employed.</p><p> </p><p>Budget 2018
announced that reforms introduced in 2017 for the public sector would be extended
to all sectors, from April 2020, giving businesses time to prepare. The Government
has consulted extensively on the reform and HMRC are publishing guidance as well as
delivering an education and support programme.</p><p> </p><p>HMRC’s estimates for
non-compliance with the off-payroll working rules are based on relevant tax return
data.</p><p> </p><p>HMRC continue to work with stakeholders to make improvements to
the Check Employment Status for Tax (CEST) digital service and wider guidance. Enhancements
will be rigorously tested with stakeholders, and operational and legal experts, and
will be available for use later in 2019.</p><p> </p><p>HMRC have been clear that it
is not correct to rule all off-payroll workers to be within or outside the rules irrespective
of their contractual terms and working arrangements. On 11 July 2019, HMRC published
a Tax Information and Impact Note setting out the impact on individuals, households
and families of the reform in the private sector. This can be found here: <a href="https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020"
target="_blank">https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020</a></p><p>
</p><p>The Government also published draft legislation on 11 July 2019 which sets
out the status disagreement process that clients will need to implement in time for
April 2020. HMRC have published guidance to support customers in making these changes
which can be found here: <a href="https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients"
target="_blank">https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients</a></p>
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