Asked by: Christian Wakeford (Labour - Bury South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that (a) sole traders and (b) people working in the gig economy are not adversely affected by changes to IR35 legislation.
Answered by Jesse Norman
The off-payroll working rules (IR35) do not apply to people who are self-employed, such as sole traders.
The Government is committed to working with organisations to ensure that changes to the rules are implemented correctly. HMRC are undertaking an extensive programme of education and support to help organisations prepare for the reform.
Asked by: Rehman Chishti (Conservative - Gillingham and Rainham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce uncertainty for (a) contractors and (b) businesses that are affected by the changes to IR35.
Answered by Jesse Norman
The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. 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 are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform. This includes:
Asked by: Rehman Chishti (Conservative - Gillingham and Rainham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people will be affected by the proposed changes to IR35 in (a) Medway, (b) Kent and (c) the South East.
Answered by Jesse Norman
The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. 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 are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform. This includes:
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has of the additional revenue that will accrue to the public purse as a result of his proposed IR35 changes; and if he will make a statement.
Answered by Jesse Norman
HMRC’s latest assessment of the additional revenue as a result of the changes to the off-payroll working rules is set out in Table 2.2 of Budget 2020.
HMRC are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to delay enforcement of the IR35 rules until the House of Lords Economic Affairs Finance Bill Sub-Committee reports on its inquiry.
Answered by Jesse Norman
As announced at Budget 2018, the reform of the off-payroll working rules will come into effect from April 2020. It is routine for the Finance Bill Sub-Committee of the House of Lords Economic Affairs Committee to inquire into the draft Finance Bill, focusing on specific areas of interest to the Sub-Committee.
In response to the off-payroll working review, published on 27 February, HMRC have published a statement of intent setting out HMRC’s compliance approach in the first year of implementation. As part of HMRC’s supportive approach, in the first 12 months taxpayers will not have to pay penalties for inaccuracies relating to the off-payroll working rules unless there is evidence of deliberate non-compliance.
Asked by: Graham Brady (Conservative - Altrincham and Sale West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the off-shoring of contracts as a consequence of the planned extension of IR35.
Answered by Jesse Norman
The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. 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 are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of Exchequer, what recent assessment he has made of the (a) preparedness of businesses for the reforms to off-payroll working rules due to be implemented in April 2020 and (b) the potential merits of delaying that implementation date.
Answered by Jesse Norman
As announced at Budget 2018, the reform of the off-payroll working rules will come into effect from 6 April 2020. The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. 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.
As part of the review published on 27 February 2020, HMRC engaged with a number of affected individuals and businesses through a series of stakeholder roundtables to test business readiness.
The Government is committed to working with organisations to ensure changes to the off-payroll working rules are implemented correctly from April 2020. HMRC are undertaking an extensive programme of education and support to help organisations prepare for the reform. This includes:
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of introducing regulations to prevent companies who employ temporary agency contractors operating disguised remuneration schemes before the reforms to off-payroll working rules are made in April 2020.
Answered by Jesse Norman
It is possible to comply with the off-payroll working rules without using disguised remuneration schemes. The Government remains committed to tackling the continued use of disguised remuneration schemes, and set out further action to tackle these schemes at the Budget. HMRC have already published a factsheet to support contractors to prepare for the changes to the off-payroll working rules, and are continuing to step up their communications in the run up to implementation. HMRC have also launched further products to support contractors in understanding the changes, including a self-help guide on how to spot tax avoidance schemes.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of Exchequer, what assessment he has made of the effect on employment rights of the proposed reforms to off-payroll working rules.
Answered by Jesse Norman
It is fair that two people working as employees pay broadly the same tax and NICs, even if one of them works through their own company and the other is directly employed. There is no direct link between employment status for rights and employment status for tax; however, those who wish to challenge their employment status for rights can take their case to an employment tribunal, regardless of their tax status.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of Exchequer, what assessment he has made of the effect on labour market flexibility of the proposed reforms to off-payroll working rules.
Answered by Jesse Norman
As announced at Budget 2018, the reform of the off-payroll working rules will come into effect from 6 April 2020. The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. 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.
As part of the review published on 27 February 2020, HMRC engaged with a number of affected individuals and businesses through a series of stakeholder roundtables to test business readiness.
The Government is committed to working with organisations to ensure changes to the off-payroll working rules are implemented correctly from April 2020. HMRC are undertaking an extensive programme of education and support to help organisations prepare for the reform. This includes: