HMRC Consultation

Responses to HMRC’s consultation on extending IR35 off payroll regulations to the private sector suggests its coming under pressure to delay for at least 12 months.

ContractorCalculator claims to have analysed 29 of the submitted responses, and said the results suggest HMRC should consider delaying, reviewing and rethinking its plans because the private sector needs more time to prepare for the changes. There were 10 areas in total that respondents repeatedly flagged as concerns, which collectively highlight why HMRC should consider delaying the reforms. 

They reported that a main concern among respondents is that the April 2020 launch date for the private sector reforms will give businesses too little time to prepare, which in turn has fuelled follow-up fears that this could lead to blanket determinations about how contractors should be taxed, or put organisations in the sector off hiring contractors at all.

A HMRC spokesperson advised that provisions had been made to give the private sector time to prepare for the roll-out of the regulations by April 2020.

With under a year to go it seems that HMRC has much work to do before it can consider extending the off payroll rules to the private sector.