Hundreds of campaigners have reportedly marched outside Parliament in a demonstration against new off-payroll working rules which are due to come into effect from April this year.<\/p>\n
The #StoptheOffPayrollTax campaign warns that the rules will damage the economy as employers cut back on investment and ongoing projects and contractors take their work abroad.<\/p>\n
The legislation, officially known as IR35, will hold employers to account for determining a contractor\u2019s employment status. The new rules will also make employers liable for any underpaid tax should they incorrectly determine a contractor\u2019s employment status.<\/p>\n
Commenting on the new rules, IPSE\u2019s Deputy Director of External Affairs Andy Chamberlain, said: \u201cThe IR35 changes which are due to come in April are already causing devastation. Businesses are being forced to close due to clients not understanding the off-payroll rules and there\u2019s a good reason why they don\u2019t understand them \u2013 because nobody understands them.<\/p>\n
\u201cThe rules are so complicated that the hiring organisations that have to apply them are saying they are no longer going to use contractors and that\u2019s bad for self-employed businesses, bad for clients they work with and bad for the economy as a whole.\u201d<\/p>\n
But HM Revenue & Customs (HMRC) argues that the changes will \u201cincrease compliance\u201d with the existing off-payroll working rules by making \u201corganisations in all sectors of the economy\u201d become responsible for assessing the employment status of \u201cIndividuals who work for them through their own limited company\u201d.<\/p>\n
Notably, the new rules will not affect small and medium-sized enterprises (SMEs) who do not meet at least two of the following criteria:<\/p>\n
It has also recently been revealed that the rules will only apply to payments made for services provided on or after 06 April 2020. Previously, the rules would have applied to any payments made on or after 06 April 2020, regardless of when the services were carried out.<\/p>\n