Today, 11th July 2019, the government has published the draft legislative rules for Off-payroll working in the private sector, as part of the provisions for the Finance Bill 2020 and their commitment to a competitive and fair tax system.
Since the consultation there hasn’t been any dramatic changes, however, below are QCS Staffing’s key takeaways from the publication:
- The government will simplify the test for small businesses, reducing the complexity in applying the rules.
- For those end clients where the company ceases to be small, the client will be brought into the scope of the rules from the start of the tax year following the filing date at which it ceases to qualify as small under the Companies Act 2006 test.
- The end client is required to pass the status determination to the agency and now, also the worker directly to improve the clarity of their tax position.
- The transfer of liability will stand and is intended to be used in circumstances in which, for example, a promoter of tax avoidance has entered into the labour supply chain.
- End clients must now demonstrate reasonable care and the government will set out the minimum requirements for the ‘status disagreement process’. This will ensure workers can expect the same treatment regardless of which end client they engage with.
- CEST is likely to get a revamp but we aren’t sure what that will look like just yet, so watch this space…
For further detail, click here for the summary of responses.
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