The Chancellor Phillip Hammond has been urged not to extend the off-payroll rules that currently apply to the public sector in to the private sector in the Autumn Budget 2017.
The call has come from PRISM who have called on the chancellor to “stop and analyse” the evidence both for and against any extension rather than simply announcing it as a new measure. The budget statement is due to be delivered on 22nd November.
PRISM is an employment intermediary trade body. The organization said that the April rules have incentives for workers and recruiters to find providers who offer “high return but non-compliant solutions.”
PRISM went on to say that since the rules were introduced it has seen an increase in the number of non-compliant offerings. When the providers of these offerings were approached by HMRC they simply disappeared without a trace. In the organisation’s view if the same rules are introduced into the private sector the same problem will appear.
Craword Temple, PRISM’s chief executive said, “Extending these rules to the private sector will exacerbate the problem and will not deliver the expected HMRC returns.”
Temple’s view is that the best solution is for Hammond to order “a structural reform of the tax system” and resist “a sticking plaster approach of tweaking [IR35 related] rules.”
Mr. Temple also hinted that HMRC might require the attention of Mr Hammond. In May PRISM criticized the HMRC for giving out inaccurate information on tax status and the implementation of the rules.