IR35 OFF-PAYROLL TAX EXTENSION TO PRIVATE SECTOR

That this House notes with concern HM Treasury’s plans to extend the off-payroll (IR35) changes to the private sector; believes that this could damage the UK’s flexible workforce, reducing avenues for work and harm the economy; further notes that the extension could force thousands of contractors into false-employment, potentially costing them an estimated 30 per cent of income; notes the extension of the rules could drive up businesses project costs, significantly depriving UK industry of essential access to key skills; reflects on the impact the rollout of these rules had on the public sector and highlights that the private sector may be even more susceptible to damage; further notes concerns that the Check Employment Status for Tax (CEST) routinely does not provide clear answers and raises concerns that there could be a blanket application of the rules due to the poor performance of this tool; supports the aims of the Stop the Off-Payroll Tax campaign and calls upon the Government to offer assurances and commit resources so that companies in the private sector have support if the IR35 rules are extended; and calls on the Government to scrap the roll-out of Off-Payroll to the private sector if assurances cannot be given and look again at reviewing the tax system to better support contingent workers.