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<p>A consultation on the detail of extending reform of the off-payroll rules closed
in May and the Government will publish its response in due course. The Government
is considering the responses to that consultation, which will be taken into account
in the design of the draft Finance Bill legislation which will be published on 11
July.</p><p> </p><p>The off-payroll working rules (commonly known as IR35) are designed
to ensure that individuals who work like employees pay broadly the same income tax
and national insurance contributions (NICs) as employees, regardless of the structure
they work through. The rules have been in place since 2000.</p><p> </p><p>HMRC data
shows non-compliance with these rules is widespread. To address this, the Government
is extending the previous reforms for the public sector to all medium and large organisations
from April 2020. This reform will ensure better compliance with the rules. It does
not introduce a new tax.</p><p> </p><p>HMRC have measured the impact of reforming
the off-payroll rules in the public sector and estimate the reform has already raised
an additional £550 million in income tax and NICs in the first 12 months since it
was introduced. HMRC also published independent research into the impact of these
reforms in May 2018.</p>
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