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Taxation: Private Sector

Question for HM Treasury

UIN 65596, tabled on 27 February 2017

To ask Mr Chancellor of the Exchequer, what his policy is on extending planned changes to the IR35 tax system to cover private sector employees.

Answered on

7 March 2017

The Government does not have an estimate for the effect of the changes to off-payroll working (IR35) on the number of agency workers in the NHS. The changes apply equally to those engaged directly, and those engaged through an agency.

These changes do not introduce any new tax or national insurance liabilities. Those compliant with the current rules should receive broadly the same pay after deductions for tax and national insurance contributions that they do now.

The Government has consulted widely since the changes were announced at Budget 2016. HM Revenue and Customs arranged specific events to support the healthcare sector to understand and plan for these changes. Both NHS executives and other health professionals have taken part in the government’s consultation events.

The Government has no current plans to extend these changes to the private sector, but keeps all taxes under review.

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