It has been confimed that, effective from 6 April 2020, large and medium sized private businesses will become responsible for assessing an individual's employment status.
Where it is determined that the off payroll working rules apply, the business, agency or third party paying the worker's company will be required to deduct income tax and employee NIC, and pay employer NIC.
The existing rules will continue to apply to about 1.5m small businesses.
A further consultation on the details of the proposed reform will be published in the coming months. Draft legislation is expected in Summer 2019.
Off payroll working reform in the public sector has, rather unsurprisingly, been hailed as a success by HMRC; but problems have also been reported, including instances where the rules seem to have been applied on a "blanket" basis rather than on a case-by-case basis.
It has also been suggested that the measures introduced in 2017 led to a shortage of contractors willing to work for the public sector, especially in certain fields such as healthcare and IT.