Off-payroll Working

(asked on 4th May 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the cost to businesses of extending the roll-out of pay-roll tax rules to the private sector.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 13th May 2020

The off-payroll working rules are designed to ensure that someone working like an employee, but through their own 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 Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s estimated one-off impact on administrative burden for businesses of £14.4 million.

The TIIN 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.

HMRC also provided written evidence on the administrative burden for businesses to the House of Lords Economic Affairs Finance Bill Sub-Committee, along with a commitment to review the methodology used to estimate the impact. This evidence can be found here: https://committees.parliament.uk/work/29/draft-finance-bill-2019/publications/.

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