Economic Affairs Committee Finance Bill Sub-Committee
Off-Payroll working: treating people fairly

1st Report of Session 2019-21 - published 27 April 2020 - HL Paper 50



Chapter 1: Introduction


Chapter 2: Background to Finance Bill proposals

Changing patterns of employment

The history of IR35, 1999–2015

The Taylor Review of modern working practices

Chapter 3: Off-payroll rules in the public sector

Chapter 4: Extension of off-payroll rules to the private sector

Consultation on the extension of off-payroll rules to the private sector

Problems with the basic IR35 test

The Check Employment Status for Tax tool (CEST)

Potential cost to business of the new rules

Business readiness

Possible behavioural effects of the new rules

Umbrella companies

Possible labour market impacts

Policy objectives of the proposed changes

Compliance with existing legislation

Protecting the tax base


Review of implementation

Deferral of the off-payroll working rules to 2021

Chapter 5: Alternatives to the off-payroll working rules

The Government’s view of alternative approaches

Alternatives proposed by witnesses

A flat-rate withholding tax

Freelancer limited company (FLC)

A levy on using contractors, or ‘engagers’ tax’

Addressing the difference in NIC rates for the employed and self-employed

A statutory employment test

Office of Tax Simplification

Chapter 6: Guiding principles

Summary of Conclusions and recommendations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Call for evidence

Appendix 4: Summary of written evidence

Evidence is published online at and available for inspection at the Parliamentary Archives (020 7219 3074).

Q in footnotes refers to a question in oral evidence.

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