ICAEW.com works better with JavaScript enabled.


Off-payroll working offset rules to be introduced from April 2024


Published: 22 Nov 2023 Update History

The Autumn Statement confirms a welcome new power to offset tax following a correction to an employment status determination.

Currently, when HMRC finds that a client has made a mistake in applying the off-payroll working rules, the deemed employer is assessed for income tax, national insurance contributions (NIC) and the apprenticeship levy (where relevant). This assessment takes no account of taxes paid by the contractor or their personal service company.

However, the November 2023 Autumn Statement provided welcome confirmation that a limited set-off for the taxes paid by the contractor or their personal service company will be introduced from April 2024.

This will be achieved by allowing HMRC to set off taxes estimated to have already been paid by the worker or their intermediary against a deemed employer’s subsequent PAYE liability. This will ensure that the cost of the liability is shared more fairly between the deemed employer and the worker.

The policy paper published with the Autumn Statement explains how the new regulations will apply.

  • In cases where the deemed employer of an individual who worked via their own intermediary would be liable to pay an amount under PAYE regulations in respect of an engagement, and an amount of income tax or corporation tax is estimated to have already been paid or assessed in relation to the engagement, the amount will be treated as having been recovered from the individual or intermediary, and that amount will not be recoverable from the deemed employer.
  • This amount treated as having been recovered will be the best estimate that can reasonably be made by an officer of HMRC in respect of the income tax or corporation tax already paid or assessed.
  • Provision will be made to prevent a person making a claim for the repayment of, or a claim for relief in respect of, deducting, or setting off the amount treated as having been recovered.
  • The provisions will be in respect of deemed direct payments made on or after 6 April 2017.

Read more:

Autumn Statement

On 22 November 2023, Chancellor Jeremy Hunt delivered the Autumn Statement. Read ICAEW's analysis and reaction.

Big Ben
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250