Off-payroll working in the public sector
21 March 2016
The Government announced at Budget 2016 that it will reform the intermediaries legislation for public sector engagements. Liability to pay the correct employment taxes will move from the worker’s own company to the public sector body or agency / third party paying the company.
Further to this announcement a technical note has been published which provides further details on the changes that are being proposed. The note gives not only an overview of the changes but also further technical details and the next steps, including the scope of a consultation document that will be published shortly.
Legislation will be introduced in Finance Bill 2017 and will also be subject to full consultation. In partnership with stakeholders, HMRC will develop a new digital tool that will make the decision on whether or not the rules should apply as simple as possible and provide certainty.