The scope of the consultation is to gain opinion on how to address compliance challenges in the private sector. 

 

The consultation is open from 18 May to 10 August 2018. 

 

 

HMRC state that they face a significant compliance challenge in identifying and tackling non-compliance with off-payroll working in the private sector. The main reason being that while contractors have the responsibility for determining their employment status, individual enquiries must be launched on a contractor by contractor basis which is time consuming, requiring significant resource and therefore proving to be an inefficient process. 

 

HMRC are also concerned that leaving the responsibility for employment status determination in the hands of the contractor, means people may be working side-by-side, in the same or similar roles, but with inconsistent status decisions. They claim that they want to create a fairer playing field. 

 

Mel Stride, Financial Secretary to the Treasury said that it aims to create a “fair tax system that balances efficiency and simplicity for taxpayers, while also supporting our vital public services”. 

 

According to the consultation document, the cost of non-compliance in the private sector is high and growing – projected to increase from £700 million in 2017/18 to £1.2 billion in 2022/23. 

 

 

I will continue to follow the consultation and provided updates. 

 

Further reading: Consultation Document