Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that the costs of hiring contractors are not increased as a result of the extension of IR35 off-payroll tax to the private sector.

The Government recently consulted on how to best tackle non-compliance with the off-payroll working rules (known as IR35) in the private sector and is considering consultation responses. The impact and effect on businesses will depend on the outcome of those consultations.

HM Revenue and Customs published independent research on the impact of the April 2017 reform to off-payroll working rules in the public sector. The research found that the majority of public bodies have felt little change in either their ability to fill vacancies or the rates paid to contractors.

Link to the independent research:-

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/704931/Off-Payroll_Reform_in_the_Public_Sector.pdf