The government has offered a partial response to those parties who gave an answer on the consultation about the outlined framework. This response came after the government used the debate of an MP on the proposed reform on the controversial IR35.
John Glen MP, the Treasury minister, explained that the planned reform is being advised by the government and they have been carefully assessing the representations.
According to Mr. Glen, they plan to provide certainty and stability to organisations and individuals who are anxious regarding the off-pay working rules. These rules are expected to come in to effect from April 2020 for both the private and public sectors. The focus is on helping and guiding the affected individuals on how they can prepare for these developments in the future.
Regarding CEST, the tax tool which has received criticisms over the past few months, the minister assured that the HMRC has organised user “research sessions.” They plan to work closely with the affected parties in the coming months in order to make sure that the tool is able to fulfil the requirements of all the relevant sectors.
This new approach from the Treasury is a lot different from their historical ambitions, where they categorically refused to create a solution that can cater to all and expressed their intention to help only the “majority.”
During the debate of the MPs, Mr. Glen announced that the improved versions of the CEST will go under review and testing and these enhancements are expected to be released before the reforms come in effect in 2020. He stated the following.
“I asked officials for greater clarity on what that is likely to mean, and we are talking about improved guidance, better phraseology and improved language that gives greater certainty to individuals who make inquiries.”
While talking about the blanket IR35 decisions, the minister pointed it out as a “legitimate area of concern” and suggested it to be an anomaly and uncommon. He explained that most of those with assessments in the public sector are working on them via a “case-by-case” basis, highlighting the last year’s research. Mr. Glen then explained that he has already studied about how the research was carried out. Now, the HMRC will take the assistance of an independent body to communicate with central government departments, local government departments, and the NHS for coming to a conclusion.