Posted on March 7, 2019

The Governments, off payroll working rules, from April 2020 policy paper and consultation document was published on the 5 th March 2019. It closes for comments on the 28th May 2019. The Government intends to roll out the off payroll working rules, which were applied to the public sector from April 2017 to the private sector from April 2020.

The consultation is about how the reform will be implemented in the private sector, as the private sector is considered more diverse and definitely larger than the public sector.

The reform will only affect large and medium sized companies, small companies will be exempt , and it is intended the companies act definition of qualifying as small will be used. The qualifying conditions are met by a company in a year in which it satisfies two or more of the following conditions, annual turnover not more than £10.2million, a balance sheet of no more than £5.1million and employees of not more than 50.

Once the consultation is complete it is intended that it will be used to inform the draft finance bill legislation which is expected this summer. This will allow companies affected by this change a little time to consider how they will implement it.

When the off payroll rules were introduced in the public sector in April 2017, there were many well documented issues with organizations making blanket decisions of employment status of off payroll workers in similar roles. The Government has rightly recognized this as a problem and intends to provide some assistance in helping organizations make the right decisions, how useful this will be remains to be seen, with attempts such as the CEST tool not being great. Also the government intends to introduce a framework to resolve disagreements for off payroll workers.