IR35 Could move industry towards PAYE
ECA director of legal and business Rob Driscoll has said that changes to off-payroll tax rules set to be introduced in April should be welcomed by the industry overall.
Speaking to Construction News this week, Rob said, “the industry as a whole should welcome the fact that this could shift the model towards more direct employment, which in the face of an exacerbated skills crisis, should be considered as a good thing.”
While the new rules come into effect in April, a ‘soft touch’ approach is expected to be employed during in the first subsequent year. A review from HM Treasury stated, “customers will not have to pay penalties for inaccuracies relating to the off-payroll working rules in the first 12 months unless there is evidence of deliberate non-compliance.”
The statement also said that seminars and educational discussions will be offered to help businesses adapt to the changes.