Off-payroll working rules for the private sector

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The government has confirmed that reforms to off-payroll working rules for the private sector will be implemented from April 6th 2020.

The off-payroll rules have applied to the public since 2017 and the government has carried out a review of the roll-out to the private sector. The review has now concluded and the changes will go ahead alongside the implementation of measures to support affected businesses.

For April 2020, the new tax rules will use the 2017 changes as a starting point for the extension to organisations in the private sector.

Jesse Norman, the Financial Secretary to the Treasury states, states ‘It is only right that the off-payroll rules are applied consistently across all sectors. Two people sitting side by side doing the same work for the same employer should be taxed in the same way.’

The government will also introduce a legal obligation on organisations to respond to requested information about their size for, the agency or worker. This is to make it clearer as to who is responsible for determining the workers tax status.

The rules only apply to individuals who are working like employees under the current employment status tests, and do not apply to the self-employed. The government is also committed to ensuring that businesses can still design their workforces that makes most sense to them.

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