Parliamentary Search

Written question asked by Baroness Kramer (Liberal Democrat) on Monday, 30 September 2019, in the House of Lords. It was due for an answer on Monday, 14 October 2019. It was answered by Earl of Courtown (Conservative) on Tuesday, 8 October 2019 on behalf of the Treasury.

Foster Care: Off-payroll Working

Question

To ask Her Majesty's Government what assessment they have made of the impact on foster carers of their plans to extend the new IR35 rules to the private sector from April 2020.

Answer

The reforms to how the off-payroll working rules are administered have already been in place in the public sector, including local authorities, since 2017. In the first 12 months, these reforms brought in an additional £550 million in Income Tax and NICs, which otherwise would have gone unpaid. Independent research into the public sector reforms found that most public bodies did not experience any change in their ability to fill vacancies, or the rates they pay following the reforms.

Following consultation, the Government announced at Budget 2018 that it will extend this reform to all medium and large organisations. On 11 July 2019 HMRC published a Tax Information and Impact Note setting out the impact on individuals, households and families of the reform in the private sector.

Secondary information

Type
Written question
Reference
HL17922
Session
2017-19
Subjects
Foster care Off-payroll working
Link
View this Written question on www.parliament.uk