HMRC has issued a consultation on implementation of reforms to
the off-payroll working rules, which will be extended to the
private sector from April 2020. The consultation provides
useful detail on the intended scope of the reforms – which
will impact both private and public sector organisations –
and is intended to help businesses start preparing for
reform. Draft legislation will be published this summer.
The off-payroll working rules are intended to ensure that
individuals who work like employees pay broadly the same employment
taxes as employees, regardless of the structure they work
through. The rules will apply where an individual
(known the "worker") provides services
through an intermediary (such as a personal services company) to
another person or entity (known as the "client"), in
circumstances where the worker would have been regarded for income
tax purposes as an employee or director of the client if the
services had been provided directly.
