UK industry calls for delay of IR35 off-payroll tax rules to private sector

www.theregister.co.uk | 6/17/2019 | Staff
doona07 (Posted by) Level 3
Click For Photo: https://regmedia.co.uk/2017/02/06/hmrc_photo_via_shutterstock.jpg

Industry bodies are urging the British government to delay its plans to extend much-hated anti-avoidance tax law IR35 to the private sector, according to an analysis of responses to a government consultation by ContractorCalculator.

In the autumn statement of 2018, UK.gov proposed extending the legislation to the private sector next year. It aims to close loopholes that allow people working through personal service companies to avoid tax contributions, which the government says will cost some £1.3bn by 2023-24.

April - MPs - Government - Attention - Effect

However, in April, MPs warned the UK government to pay close attention to the effect IR35 tax reforms will have on the private sector, with the reforms having led to contractors leaving public sector projects.

According to the consultation responses, which closed on 28 May 2019, respondents were unanimous in calling for a further delay to allow the private sector adequate time to prepare for the changes. They said the April 2020 rollout doesn't allow businesses adequate time to prepare.

Feedback - ContractorCalculator - Consists - Consultation - Responses

The feedback analysed by ContractorCalculator consists of 29 consultation responses from the likes of the Institute of Chartered Accountants in England and Wales (ICAEW), the Confederation of British Industry (CBI), the Recruitment and Employment Confederation (REC) and the Association of Independent Professionals and the Self Employed (IPSE).

Some noted that firms typically require 12 months to implement new IT systems and associated processes...
(Excerpt) Read more at: www.theregister.co.uk
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!