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<p>The off-payroll working rules are designed to ensure that someone working like
an employee, but through a company, pays similar levels of tax to other employees.
It is fair that individuals who work in a similar way should pay broadly the same
amount of tax. The rules do not apply to the self-employed or stop anyone working
through their own company.</p><p> </p><p>The reform to the off-payroll working rules
does not change the rules by which employment status is determined but moves the responsibility
for making the determination from the individual to the end client.</p><p> </p><p>At
Budget 2018, the independent OBR did not judge the forthcoming reform to have any
specific macroeconomic impacts. This was reiterated in the Tax Information and Impact
Note (TIIN) published in July 2019, which sets out HMRC’s assessment that the reform
to the off-payroll working rules is expected to affect 170,000 individuals. The TIIN
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>HMRC have not seen evidence of organisations changing their recruitment practices
to hire contractors offshore. Organisations will continue to be free to decide how
they engage their workers and it will be for those workers to decide whether they
wish to accept the terms and conditions offered.</p>
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