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registered interest false more like this
date less than 2021-03-18more like thismore than 2021-03-18
answering body
Treasury more like this
answering dept id 14 more like this
answering dept short name Treasury more like this
answering dept sort name Treasury more like this
hansard heading Off-payroll Working more like this
house id 1 more like this
legislature
25259
pref label House of Commons more like this
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. more like this
tabling member constituency Erith and Thamesmead more like this
tabling member printed
Abena Oppong-Asare more like this
uin 171748 more like this
answer
answer
is ministerial correction false more like this
date of answer less than 2021-03-23more like thismore than 2021-03-23
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 remove filter
answering member printed Jesse Norman more like this
grouped question UIN
171749 more like this
171750 more like this
171751 more like this
171752 more like this
question first answered
less than 2021-03-23T14:54:49.83Zmore like thismore than 2021-03-23T14:54:49.83Z
answering member
3991
label Biography information for Jesse Norman more like this
tabling member
4820
label Biography information for Abena Oppong-Asare more like this