This update relates to the UK government’s announcement that it will be consulting on making changes to the off-payroll taxation rules (commonly referred to as IR35) in early 2018.
It is expected that such consultation will be published no later than the government’s Spring Statement (scheduled for 13 March 2018).
If the proposed changes were implemented, the IR35 rules applicable to the private sector would be aligned with the rules applicable to the public sector, with the result that private businesses engaging consultants through intermediaries may become liable to pay and account for employment taxes.