In May 2022, a report was published by The House of Commons PAC which claimed there are “structural problems” that need addressing in terms of how the tax avoidance rules work in the public and private sectors.
HMRC has now confirmed that it will review the IR35 off-payroll working legislation, in response to the PAC’s requests.
HMRC will research into the impact of the reforms by forging closer ties with contracting stakeholders and government department compliance chiefs, leading into having to examine what additional customer support it can offer to end-hirers combatting with the changes.
HMRC has also agreed to revise the processes it has in place for contractors who have cause to challenge their IR35 status determinations, whilst also committing to sharing with the Committee details of a cost-benefit analysis of the reforms.
The commitments outlined above have a confirmed implementation date of December 2023.
For more information regarding HMRC’s response to the PAC report, please click the link below: