.png)
.png)
Issue:
4916
/
Categories:
Comment & Analysis
, HMRC investigations
, IR35
, off payroll
, Investigations
Correcting the balance
Key points
- The new off-payroll rules (in 2017) required the identification of the ‘deemed direct payment’ rather than the ‘deemed employment payment’.
- Government departments had made substantial provision for taxes due to HMRC for incorrectly classifying contractors under the off-payroll legislation.
- A single solution will allow a set-off enabling HMRC to account for tax already paid by the worker’s intermediary when calculating the deemed employer’s liability.
- The set-off will apply retrospectively to open compliance cases back to April 2017 but HMRC will not reopen past settled cases.
The longstanding IR35 rules also known as the intermediaries legislation (ITEPA 2003 Ch 8) were introduced in April 2000 to ensure that individuals working like employees pay similar taxes even if they work through an intermediary such as their own limited company often referred to as a personal service company (PSC).
Reforms to the...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
