Contractors await July 11th, the day on which the Off-Payroll Working in the Private Sector’ will be implemented via draft legislation.
The Treasury Minister Jesse Norman spoke on Wednesday that the bill’s draft clauses, along with the consultation response and explanatory notes would be released in the next two weeks.
Seb Maley from Qdos Contractor opines that as the date of the draft legislation comes closer, it is hard to expect a delay or u-turn. He believes that both actions have their merits. However, since the draft legislation has arrived too soon after the IR35 consultation’s closing, one has to ponder whether or not those responses were taken seriously by the HMRC.
Ego’s consultant, Roger Sinclair, opines that the view of the government regarding the IR35 requires to be firmed up while keeping in mind that the affected parties were last able to contribute in May. The legal adviser stated that,
“Too much has been fluid up to this point. This will represent the first real opportunity we will have to get to grips with the detail of exactly how the government intends to implement round two of chapter 10 — IR35 in the private sector from April 2020.”
Meanwhile, Bauer and Cottrell believe that a new prime minister, cabinet, and a new chancellor can provide for an opportunity that can suspend the legislation. Still, Kate Cottrell looks forward to July 11th and see what they have done with the draft bill in the recent months. Thus, he is hopeful that the draft can help them to understand how HMRC expects it to work. This will be valuable and allow them to make informed decisions.
Mr. Sinclair agrees with the above assessment as he is repeatedly asked regarding the legislation and cannot reply properly till he can read it by himself. He remarked that it is possible that the draft gets amended while going through the legislative process.
He highlighted how there were some little changes in chapter 10 about the royal assent. He believes that the draft can allow a peek into the intent of the government so they can prepare in detail on how to tackle it. Qdos opines that the recent proceedings also prove that government is moving forward rather than dwelling in the past. This is because that despite Brexit and prime minister race, they are not slowing down the IR35 reform.