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<p>The off-payroll working rules are designed to ensure that an individual who works
like an employee, but through their own limited company, pays broadly the same Income
Tax and National Insurance contributions as other employees. Employment status is
not a matter of choice but depends on the facts and actual working practices of an
engagement.</p><p>From April 2020, following the roll-out of the reforms to the off-payroll
working rules to large and medium sized organisations in all sectors, clients will
be required to assess a contractor’s employment status and determine whether they
fall within the scope of the rules. HMRC's Check Employment Status for Tax (CEST)
digital service was developed in conjunction with tax specialists, contractors and
other stakeholders, and is available to help organisations apply the off-payroll working
rules correctly.</p><p> </p><p>The Tax Information and Impact Note (TIIN) published
in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working
rules is expected to raise around £3 billion by 2024, and is not expected to have
any significant macro-economic impacts. The TIIN can be found here: <a href="https://bit.ly/2YTbOaA"
target="_blank">https://bit.ly/2YTbOaA</a>. Furthermore, independent research conducted
by IFF Research and Frontier Economics following the implementation of the 2017 public
sector reform showed the reform had not resulted in significant disruption to the
sector, or to its use of contingent labour.</p><p> </p>
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