Consultation outcome

Off-payroll working in the private sector

This was published under the 2016 to 2019 May Conservative government
This consultation has concluded

Read the full outcome

Off-payroll working in the private sector - summary of responses

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Detail of outcome

This document provides the summary of responses and government response to the consultation on off-payroll reform in the private sector.


Original consultation

Summary

We are seeking views on the best way to tackle non-compliance with the off-payroll working rules (IR35) in the private sector.

This consultation ran from
to

Consultation description

In 2000, the government introduced the off-payroll working rules known as IR35. These rules ensure that people working through a personal service company (PSC) who would have been employees if they had been engaged directly, pay broadly the same Income Tax and National Insurance contributions (NICs) as if they were employed.

We have estimated that only 10% of individuals working in this way apply the rules properly, costing the Exchequer hundreds of millions of pounds in lost tax revenues every year.

In April 2017, the government reformed these rules for engagements in the public sector, and early indications are that this has resulted in an increase in public sector compliance.

In the Autumn Budget 2017, the government announced it would consult on how to tackle non-compliance with the off-payroll working rules in the private sector, and we are asking for comments on the best way to do this.

Before you send your response, we recommend that you read the independent research into the early stages of the public sector reform, HM Treasury’s press release, and the factsheet that accompanies the consultation document below.

Documents

Off-payroll working in the private sector - consultation document

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Consultation on off-payroll working in the private sector - factsheet

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 18 May 2018
Last updated 29 October 2018 + show all updates
  1. Summary of responses published.

  2. First published.

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