Parliamentary Motion tabled to Stop the Off-Payroll Tax

15 May 2019

A Motion has been tabled in the House of Commons calling on the Government to think again about its controversial plans to extend the Off-Payroll Tax, the IR35 rules, to the private sector.

The Motion, Early Day Motion #2379 has been tabled by Ged Killen, Labour MP for Rutherglen and Hamilton West who recently led a debate in Westminster Hall on the issue. MPs of all parties can now sign the motion, to express their support for the UK’s flexible workforce and against the Off-Payroll Tax, which will slap 14.3% extra costs on all firms that rely on contractors as well as damaging contracting in the UK. The EDM is here

Having imposed the Off-Payroll Tax – the ‘off-payroll working rules’ – upon the public sector, HMRC is intent on enforcing a private sector rollout.This is despite the impact of the reforms in the public sector, which demonstrated its crippling impact on public sector projects and industry as a whole.

The Stop the Off-Payroll Tax campaign, led by ContractorCalculator, supported by contractors and small businesses and other organisations, is campaigning to stop the introduction of the damaging off-payroll rules to the private sector and for the Government to instead launch a much-needed review into the deeply flawed IR35 legislation and to come up with the right way to recognise contracting in the tax system.

The roll-out of the Off-Payroll Tax will cause huge damage to the UK labour market, some of which has already been realised.Already large companies are telling contractors they will no longer take them on next year, when the Off-Payroll Tax comes in. The double stealth tax – on businesses and contractors will slap a huge 14.3% stealth tax on UK businesses.Already rates are being pushed down, so the ill-considered Off-Payroll Tax will actually not lead to additional revenue for HMRC, yet will damage contracting, businesses and the UK economy.

As things stand, the legislation for the Off-Payroll Tax will be introduced the Finance Bill this Autumn, 2019 to go live in April 2020 so MPs are being asked to sign the EDM and to show their support to Stop the Off-Payroll Tax campaign!

The campaign is also seeking to remove the flawed CEST(Complex Employment Status Test) from the tax system, it has never worked and has been exposed as not fit for purpose in recent tax tribunals.

Dave Chaplin, Director of the Stop the Off-Payroll Tax campaign and CEO of ContractorCalculator said:

“The Stop the Off-Payroll Tax campaign has been launched to bring together the voices of contracting and of UK business to oppose the damaging and ill-considered Off-Payroll Tax.”

“The campaign is delighted that Ged Killen MP, who has shown he is a real supporter of contractors and the flexible economy, has tabled an Early Day Motion and we urge all MPs who support UK business and contractors and freelancers to sign up and tell the Treasury to think again.The Off-Payroll Tax will slap a huge 14.3% stealth tax on UK businesses and will not lead to additional revenue for HMRC.So we need a halt to these damaging plans and proper consideration of how best to recognise contracting and freelancing in the tax system, to the benefit of all.”

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