IR35 review roundtables

[JamesBrown11]

Russell McIntyre on LinkedIn: Great to have had the opportunity to speak at roundtable event at

Great to have had the opportunity to speak at roundtable event at HMRC today as part of the government review of Off Payroll / IR35 reform. A few quick take-aways:
- It's going ahead. This was a review of the implementation only, not does it happen
- Results of review mid-Feb, expect final legislation March with Finance bill and go-live April 6th
- Some acceptance that the market is not fully ready, that the general election has put final legislation / guidance behind and especially that there is confusion and challenges over timings of work carried out in March and paid in April being in-scope
- Best possible outcome is some form of softer launch, especially for contractors in-flight which will be more challenging to reassess in timescales left than new contracts post April
- CEST unlikely to change further. At best improved guidance on its use. The view from the group was that CEST is placing 70% of assessments Inside IR35 currently..!
- Commitment to tackle / offer better guidance on non-compliant umbrellas or "IR35 solutions" being created
- Contractors reassessed as Inside IR35 will NOT be pursued retrospectively for services at same client pre April 20.
- Better guidance on appeals process, reasonable care, tax liability
Get in touch if you would like to discuss!

[Paralytic]

Contractors reassessed as Inside IR35 will NOT be pursued retrospectively for services at same client pre April 20.

Unless they stop using the word retrospectively in such sentences, this means nothing. HMRC's dictionary definitions are different from others.

[NeedTheSunshine]

Unless they stop using the word retrospectively in such sentences, this means nothing. HMRC's dictionary definitions are different from others.

They could argue that it isn't retrospective as it was always inside and the previous assessment of outside was incorrect. Unless it's a completely different role.

[Paralytic]

They could argue that it isn't retrospective as it was always inside and the previous assessment of outside was incorrect. Unless it's a completely different role.

Exactly. People will who take the LinkedIn post at face value will presume they're ok to go from outside to inside at the same client, but I bet HMRC would claim that's not a retrospective look.

[BrilloPad]

HMRC have a long history of nice words while their actions remain unchanged.

Even if anything does change, it is too little too late.

[LetterBox]

What does it mean by "softer launch"?

[malvolio]

What does it mean by "softer launch"?

Something along the lines of turning on the new rules but not prosecuting people that break them. Which sounds nice, but is a mechanism for allowing bad practices to develop and become normal.

In other words, the hugely incompetent HMRC once again failing to understand the damage they are doing.

[LetterBox]

Something along the lines of turning on the new rules but not prosecuting people that break them. Which sounds nice, but is a mechanism for allowing bad practices to develop and become normal.

In other words, the hugely incompetent HMRC once again failing to understand the damage they are doing.

Thanks for clarifying.

[eek]

Something along the lines of turning on the new rules but not prosecuting people that break them. Which sounds nice, but is a mechanism for allowing bad practices to develop and become normal.

In other words, the hugely incompetent HMRC once again failing to understand the damage they are doing.

Given that companies are already implementing their strategies - the damage has been done.

Nothing and no-one is going to fix things now as you can't turn back the clock and remove a blanket ban without looking foolish.

[JamesBrown11]

All roundtable sessions are due to be completed before the new budget kicks in on March 11.

As far as I know most businesses are still not prepared for the reform, so there is a small chance for a softer launch, ie. tulip will hit the fan but the fan will be turned off .