Press release: Call for wider review of employment v self-employment
It is disappointing that the Government is continuing to push for the extension of off-payroll working rules to the private sector rather than taking the opportunity to use the Taylor review as a springboard for a wider review of the taxation of employment versus self-employment, says the ATT.
The Chancellor confirmed today his intention to extend the changes in the off-payroll rules introduced last year for the public sector, into the private sector from April 2020. The new rules will affect individuals working through their own company for private sector businesses as the rules shift the responsibility for determining the tax status of an individual from that individual to the engager.
Jon Stride, Co-Chair of the ATT’s Technical Steering Group, said:
“We welcome the delay in introducing these new rules to the private sector, which is something we called for in our response to the consultation earlier this year. Businesses will have enough upheaval to deal with in 2019 with the combined effects of Brexit and the rollout of Making Tax Digital.
“We are also interested to see that smaller businesses will be excluded from this change, as the ATT had raised concerns about their ability to cope with the new rules and get the right systems in place.
“It is disappointing that the Government is continuing down this line rather than taking the opportunity to use the Taylor review as a springboard for a wider review of the taxation of employment versus self-employment, combined with a greater and more visible compliance activity by HMRC to enforce the existing rules.”