In the Autumn Statement on 29 October 2018, the Chancellor announced that the government would be extending the off-payroll working rules (known as IR35) to the Private Sector, and that this will be introduced in April 2020. The Chancellor stated, however, that small organisations would be exempt from any changes. From this date, for medium and large sized organisations, responsibility for determining the off-payroll status of all working PSC contractors will fall to the end-users in private sector companies.
Very recently, HMRC has announced a consultation to seek views on how the off-payroll rules will work in practice. Sopra Steria Recruitment will be fully engaged in the consultation and we would encourage Private Sector organisations to engage to influence the final outcome.
The consultation will run until 28th May 2018 and it can be viewed via this link https://www.gov.uk/government/consultations/off-payroll-working-rules-from-april-2020 The consultation document sets out several scenarios and questions, to which we will be responding.
Guidance has also been issued by the Association of Professional Staffing Companies (APSCo), where Sopra Steria Recruitment has been an active member since 2000. APSCo is fully engaged with HMRC and HM Treasury and this guidance is useful to consider many aspects of forward planning for the IR35 changes.
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