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<p>The off-payroll working rules (IR35) have been in place for nearly 20 years. They
are designed to ensure that individuals working like employees but through their own
company pay broadly the same tax and National Insurance contributions (NICs) as other
employees who are directly employed.</p><p> </p><p>HMRC do not have an annual breakdown
of revenue received from the application of the off-payroll working rules. The Government
estimates that only one in ten personal services companies (PSCs) who should be operating
the rules are doing so. This non-compliance is projected to increase from £700 million
per year in 2017/18 to £1.3 billion per year in 2023/24.</p><p> </p><p>HMRC have measured
the impact of reforming the off-payroll rules in the public sector and estimate that
the reform has already raised an additional £550 million in income tax and NICs in
the first 12 months since it was introduced.</p>
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