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Private Sector Intermediaries Legislation IR35

Nothing mentioned specifically in the budget but found this in the full report

3.7 Off-payroll working in the private sector – The government reformed the off-payroll working rules (known as IR35) for engagements in the public sector in April 2017. Early indications are that public sector compliance is increasing as a result, and therefore a possible next step would be to extend the reforms to the private sector, to ensure individuals who effectively work as employees are taxed as employees even if they choose to structure their work through a company. It is right that the government take account of the needs of businesses and individuals who would implement any change. Therefore the government will carefully consult on how to tackle non-compliance in the private sector, drawing on the experience of the public sector reforms, including through external research already commissioned by the government and due to be published in 2018.

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22nd Nov 2017 14:16

I'm right behind you! Found this in the Overview of tax legislation and rates (OOTLAR):
1.15. Off-payroll working reform: extension to the private sector
As announced at Autumn Budget 2017, the government will consult on how to tackle non-compliance with the intermediaries legislation (commonly known as IR35) in the
private sector. The legislation ensures individuals who effectively work as employees are taxed as employees, even if they choose to structure their work through a company. A possible next step would be to extend the recent public sector reforms to the private sector... The consultation will draw on the experience of the public sector reforms, and external research already commissioned by the government and due to be published in early 2018.
https://www.gov.uk/government/publications/autumn-budget-2017-overview-o...

I'll be checking in with the usual suspects for their analysis - and keen to hear what AccountingWEB members think about how it is likely to work out. But it might help if we could see the consultation paper first!

Here's what I picked up so far - it's all still speculation, but contractor representatives are relieved HMRC didn't go full steam ahead for April 2018: https://www.accountingweb.co.uk/tax/business-tax/hmrc-flags-new-ir35-reg...

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22nd Nov 2017 14:27

At least there has been a pause for thought, perhaps drawing on experience of MTD, Class 4 NIC rates etc etc

Same applies to the sensible response regarding VAT and looking at easing the cliff edge.

Pleasantly surprised is my reaction today as we were prepared for more chaos!

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By Matrix
22nd Nov 2017 16:01

I was expecting this and had already looked at how many could be affected by any changes (about 5 clients only) and will advise them what could be in the pipeline. I am glad that my practice does not rely heavily on contractors.

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23rd Nov 2017 10:10

We only have one client that could be caught. However, I feel sorry for a place I worked at a few years ago. Contractor specialist practice with around 300 employees, whose entire business model could go to the wall.

Have to say, I'm very surprised that it's only a consultation announced, and not the rollout.

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