HMRC has published the findings of research which sought to
assess the effectiveness of HMRC’s messaging and communications materials which
were designed to inform contractors of the changes to the IR35 rules in the
private sector which will now be introduced from 6 April 2021.
Based on the findings of 30 interviews with contractors who
provide their services through personal service companies, the report Communications
research: off-payroll working rules (IR35) found a high level of
awareness and understanding of the changes in industries where the use of
contractors is common. In contrast, awareness was lower in industries with
fewer contractors.
The findings showed that contractors wanted detailed
information from HMRC about the changes, to give them a clear understanding of
the reforms and how they would personally be affected. A focus on what would
change in terms of how they meet their tax obligations, rather than a general
explanation of the changes, was widely preferred among the research
participants.
Materials which clearly and objectively outline how the reforms
will affect contractors’ tax obligations were found to be particularly
effective and HMRC’s case studies were appreciated for ‘the reassurance they
offered participants and for providing relatable examples of what would change
for contractors’.
HMRC has published the findings of research which sought to
assess the effectiveness of HMRC’s messaging and communications materials which
were designed to inform contractors of the changes to the IR35 rules in the
private sector which will now be introduced from 6 April 2021.
Based on the findings of 30 interviews with contractors who
provide their services through personal service companies, the report Communications
research: off-payroll working rules (IR35) found a high level of
awareness and understanding of the changes in industries where the use of
contractors is common. In contrast, awareness was lower in industries with
fewer contractors.
The findings showed that contractors wanted detailed
information from HMRC about the changes, to give them a clear understanding of
the reforms and how they would personally be affected. A focus on what would
change in terms of how they meet their tax obligations, rather than a general
explanation of the changes, was widely preferred among the research
participants.
Materials which clearly and objectively outline how the reforms
will affect contractors’ tax obligations were found to be particularly
effective and HMRC’s case studies were appreciated for ‘the reassurance they
offered participants and for providing relatable examples of what would change
for contractors’.
