Impacts of the 2021 off-payroll working rules reform in the private and voluntary sectors
HMRC's estimates of the impact of the 2021 off-payroll working rules reform on the private and voluntary sectors.
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This report sets out HMRC’s estimates of the impact of the 2021 off-payroll working rules reform, sometimes known as IR35, on the private and voluntary sectors.
The off-payroll working rules were introduced in 2000 to ensure individuals who work like employees, but through their own limited company (often known as a personal service company) or other intermediary, pay broadly the same Income Tax and National Insurance contributions as individuals who are directly employed. To improve compliance the rules were reformed in 2017 for the Public Sector and in 2021 for medium and large sized private and voluntary sector organisations.
The report includes estimates on:
- changes to the way workers provided their services
- additional tax revenue generated
- costs incurred in relation to the reform
- education and support provided by HMRC
The report sets out information on the methodology and the data sources HMRC has used for deriving these estimates.
HMRC has also published research into the short-term effects of the 2021 reform of the off-payroll working rules.