There were no huge surprises in the Autumn Budget in relation to employment taxes but there are a couple of consultations in the offing which could have significant implications for employers.
Off pay-roll working in the private sector
The government has announced it will review whether the "IR35" reforms made in respect of public sector workers (where the burden of compliance has been shifted to the engager/employer) should be rolled out to the private sector. This has potentially significant compliance consequences for engagers/employers who take on consultants who work through personal service companies.
Employment status
A consultation will be released as part of the government's response to the Matthew Taylor review of working practices which will consider options to make employment status for both employment rights and tax purposes clearer. This area is ripe for reform because of the uncertainties in the law so the consultation is a potentially welcome development. However, any material changes to the tests could have far reaching consequences for employers.
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