The Institute of Chartered Accountants in England and Wales (ICAEW) has responded to the government's consultation in regard to the 'off-payroll working rules from April 2020'. The rules aim to 'reform the tax treatment of off-payroll work' in the private sector.
According to the ICAEW, there are three 'interdependent policy issues' that need to be considered. It believes that the tax, national insurance contributions (NICs) and the legal status of work should be the same for all UK employees.
Additionally, off-payroll working in the private sector and the public sector 'should be the same', and the tax and benefit differentials between different types of work need to be addressed.
Some of the significant points contained in the ICAEW's response to the now-closed consultation include extending the timeline for the implementation of off-payroll working rules until 'at least' April 2021; clearly defining what constitutes a 'small' business; and putting a 'real-time, independent statutory method of appeal' into place.
The ICAEW believes that a separate government initiative, the 'Good Work Plan', provides a suitable opportunity for stakeholders to reach a consensus on some of these issues.