Technical change to off-payroll working legislation
12 November 2020
Within the Financial Secretary to the Treasury’s Written Ministerial Statement, it has been confirmed that a technical change to the off-payroll working rules will be made in the next Finance Bill.
The change will ensure that the legislation operates as it is intended to, from 6 April 2021, for engagements where an intermediary is a company. This amendment will correct a previous unintended widening of the definition of an intermediary, which went beyond the intended scope of the policy.
A relevant amendment will be made to National Insurance Contributions (NICs) regulations after the Finance Bill has been introduced to Parliament, and this will be before 6 April 2021.
Businesses and individuals should continue to make arrangements for the off-payroll working changes to take effect, on the basis that Chapter 10 will not be applicable in scenarios where an individual performs services for a client, and they are already engaged under a contract of employment, meaning that their earnings are subject to PAYE by another party, other than that individual’s intermediary, in that supply chain.
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