Off-payroll working (IR35) - calculation of PAYE liability in cases of non-compliance

22 November 2023

 

Government has today (22nd November 2023) published the outcome of its consultation “Off-payroll working (IR35) - calculation of PAYE liability in cases of non-compliance” which ran from April to June 2023.  See our previous news about the consultation here.

Government will introduce secondary legislation which will enable HMRC to apply a set-off of income tax and National Insurance Contributions (NIC) paid by an individual and their intermediary company against a PAYE liability subsequently assessed against a deemed employer following an error in operation of the off-payroll working rules.  This will address the current situation where there can be over-collection of tax and NIC.

The change will apply to liabilities assessed on or after 6th April 2024 relevant to deemed direct payments made from 6th April 2017 and will be enacted via an amendment to Chapter 3 of Part 11 Income Tax (Earnings and Pensions) Act 2003 (ITEPA).

Read the outcome of the consultation here.

Read the policy paper ‘Off-Payroll Working (IR35) — calculation of PAYE liability in cases of non-compliance” here. 

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