Employment: Taxation:Written question - 15098

Asked by Alyn Smith

Named Day

'Named day' questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.

Asked on: 12 February 2020
Employment: Taxation
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of proposed changes to IR35 rules from April 2020 on SMEs in Scotland.
Answered by: Jesse Norman
Answered on: 24 February 2020

The off-payroll working rules are designed to ensure that an individual who works like an employee, but through their own limited company, pays broadly the same Income Tax and National Insurance contributions as other employees. The rules do not apply to the self-employed or stop anyone working through their own company.

The reform of the off-payroll working rules in April 2020 will apply only to medium and large-sized businesses, minimising administrative burdens for the vast majority of engagers. The existing rules will continue to apply to the smallest 1.5m businesses.

The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. The TIIN can be found here: www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020. This is a UK-wide figure.

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