IR35 | 'Recruiters must prepare for reform'

A House of Lords Committee is set to probe the government’s upcoming off-payroll working rules, which are expected to come into effect in April this year.

The finance bill sub-committee revealed this week that it has launched an inquiry into the Finance Bill 2019-20, the FT Adviser reported. The inquiry will have a specific focus on the government’s proposal to extend the new IR35 legislation.

This latest inquiry will focus on how the rules have affected the public sector over the past 20 years, how it will impact private businesses, whether the system is clear enough when it comes to determining the tax status for workers and if there could be simpler and more improved ways in which the objective of the new rules can be achieved.

While the latest inquiry is welcomed, industry expert Seb Maley, CEO of IR35 specialist Qdos, believes that this should have been carried out months ago and recruiters must start to prepare for the upcoming reform now.