From Crunch Knowledge
The House of Lords Finance Bill Sub-Committee has launched a new inquiry on the implementation of the off-payroll working rules in the private sector (known as IR35) and how these rules are working in practice.
Crunch has responded to the call for evidence and will watch the progress of the inquiry closely.
You can find out more about the terms of reference for the inquiry here.
The Sub-Committee is seeking evidence about the impact of the new rules on engagers, and the changes needed to implement the rules effectively. The committee also wants to know whether the new rules have caused an increase in disputes between engagers and contractors and whether the rules have led to any underlying behaviours in the assessment of assignments for IR35, such as the use of ‘blanket assessments’.
HMRC’s Check Employment for Tax Status (CEST) tool has been the subject of much criticism, with a lack of confidence among contractors and engagers alike that it accurately assesses the employment status of an assignment. The Sub-Committee wants to know if CEST can be improved further.
The Sub-Committee also wants to know if the implementation of the new rules has led to any additional costs for engagers to comply with the new rules and how this has affected the day to day operation of systems, personnel and training.
Crunch is able to bring our own experience of implementing the new rules within our business and we have a unique perspective from our 40,000 community members which we have used to inform our response to the call for evidence.
When the government allows us to, we will publish our response and keep you updated should we be called to give evidence in person to the Sub-Committee.