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Consultation on off-payroll working IR35

Journalist: Yoana Cholteeva, People Management

ended 04. May 2023

For tomorrow's news run of People Management (https://www.peoplemanagement.co.uk/#gref) we are writing an analysis article about the UK government's consultation on the issue of double taxation under IR35.

For this reason, we are wondering:

  1. If introduced, how are the proposed changes as part of the consultation expected to impact business organisations?
  2. Is there any type of preparation that businesses can start with before any changes are mandated by the government? What should they consider?

3 responses from the Newspage community

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Editor
Kate Underwood
Managing Director / HR Director at Kate Underwood HR and Training
The proposed changes in the consultation present a range of challenges for businesses. The increased regulatory burden, especially for larger companies, could result in significant costs. Companies will need to invest more resources in gathering and reporting data on their gender pay gap and other metrics. Additionally, companies may need to restructure their governance processes to incorporate more employee representation, which could involve significant changes in corporate culture and decision-making.
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Sandra Wilson
Owner/Director at Cottrell Moore Limited
The UK government's consultation on the issue of double taxation under IR35 aims to "encourage clients to take reasonable care and make correct status determinations from the outset" This will be an interesting one to watch, considering case law on status determination is still so vague even to employment lawyers and judges, how on earth is the average Company representative supposed to understand it!
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Bradley Lay
Founder at Peak Capital Group
Yet again we see another government tax policy that impacts the lifeblood of the UK; small businesses, which account for over 99% of all UK private sector company’s.
The proposed changes to IR35 could not have come at a worse time, already grappling with the effects of record inflation this year, small businesses are now faced with yet another government tax policy that threatens their survival.
The burden of tax compliance and administrative costs disproportionately affects SMEs, who often lack the resources to comply with complex tax rules. The proposed changes to IR35 will only add to the bureaucratic burden, making it even harder for small businesses to compete with larger companies.
It is important that the government considers the impact on these businesses and takes action to support small businesses through this difficult period, or risk losing the engine of the UK economy.