I have recently submitted on behalf of the FCSA evidence to the House of Lords and HMRC’s separate reviews on off-payroll legislation.
HMRC’s review was paying lip-service to the Sajid Javid’s election promise to review off-payroll and rather than review the policy itself, instead, the focus was on how to improve the implementation of the off-payroll reforms.
The conclusions of HMRC’s review that was published on 27 March included a commitment to external research into the impact of the reforms six-months after implementation.
I can only hope that the research they undertake will be genuinely independent and that there will be an opportunity for all stakeholders to contribute.
In contrast, when I gave evidence to the House of Lords Finance Bill Committee on 24 March, they were very concerned about the policy itself and its likely impact on business, individuals and the economy as a whole.
They did not appear to be supportive of the planned legislation and it will be very interesting to see what conclusions they reach. Whatever the view of the House of Lords Finance Bill Committee, it appears that the legislation is coming into effect any way this April, and we expect further details in Budget 2020.
5 arrested in connection with suspected loan charge fraud
In other news, HMRC has arrested five people in connection with suspected loan charge fraud, defeated a tax avoidance scheme promoter, and published details of the final court decision in relation to the Managed Service Company (MSC) case against Costelloe Business Services.
The MSC case itself is fairly clear cut in the level of involvement and influence in how payments were made to workers and is a usual reminder to be wary of such service providers. FCSA’s Code of Compliance has a comprehensive section on MSC legislation and best practice that we test our members against, therefore minimising MSC risk for the supply chain.
I am hoping that Budget 2020, due to be announced by the new Chancellor Rishi Sunak on 11 March, has no nasty surprises for our sector. We will be watching the budget announcement closely and will keep you informed of any developments should they arise. Follow us on Twitter @FCSA_org for a summary of the key tax measures for our sector and my commentary on LinkedIn.
Julia Kermode is the Chief Executive of FCSA. This article was first published on 4 March 2020 in the FCSA fortnightly newsletter – subscribe now: