Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to UK business of the roll-out of the off-payroll rules to the private sector.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The off-payroll working rules were introduced in 2000 and require that individuals who work like employees, but through their own company, pay similar taxes to employees. To increase compliance with the rules, from April 2020 responsibility for assessing the employment status of individuals will shift to engagers, who are better equipped to make determinations. Outside the public sector, the reform will not apply to the smallest 1.5 million organisations, minimising their administrative costs.
On 11 July 2019 HMRC published a Tax Information and Impact Note setting out the costs to business of the reform. This can be found here: https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020.