Lords committee investigates the extension of off-payroll working rules

The House of Lords Finance Bill Sub-Committee has launched a call for evidence from affected parties, businesses and the tax profession, as part of its inquiry into the draft Finance Bill 2019-20.

In scrutinising the draft bill, the sub-committee announced it would focus on the government's proposal to extend the off-payroll working rules – which were introduced for the public sector in 2017 – to large and medium-sized organisations in the private sector from April 2020.

The proposal would mean that businesses will be responsible for deciding whether contractors they hire are liable to pay income tax and national insurance contributions, and if so, for paying those sums.

"The government is proposing to extend the off-payroll working rules to large and medium-sized organisations in the private sector. We are interested in how this change will work in practice, and how it relates to wider changes in working arrangements,” said Lord Forsyth of Drumlean, chair of the Finance Bill Sub-Committee.

"To inform our work we want to hear from as broad a range of people and organisations as possible. If you have a view on off-payroll working rules, please let us know what you think."

Written submissions are requested by 25 February 2020.