Off-payroll working in the public sector - amendment
04 May 2017
One of the measures that the shortened ‘rushed through’ Finance Act 2017 retained, is off-payroll working in the public sector - reform of the intermediaries legislation.
An amendment has been made to ‘Schedule 1 - Workers’ services provided to public sector through intermediaries’. Private sector retail businesses including high street pharmacies and opticians would have inadvertently been within the scope of the off-payroll working in the public sector measure because they provide services on behalf of the National Health Service (NHS).
Such businesses would have been required to consider whether the new rules applied to all contractors working for them through an intermediary. This was not the intention of this policy so the meaning of ‘public authority’ has been changed.
New section 61L is amended to replace the definition of “public authority” to take these retail businesses out of the scope of the FOIA 2000 and FOISA 2002 definitions. The amendments reflect new provisions to be inserted into the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
The amendment retains the need for NHS hospitals to consider whether to apply the off-payroll working in the public sector rules to all contractors working for them through an intermediary. This includes contractors, who are providing ophthalmic and pharmaceutical services, (again, where they are working through an intermediary). The definition of ‘public authority’ continues to include general practitioner surgeries and dental practices or surgeries providing NHS medical and dental services.
The changes apply retrospectively and have effect from 6 April 2017.