Off-payroll working: guidance on clients’ off-payroll working obligations when a contractor works through an intermediary such as a personal service company across borders and/or some of the parties (client, contractor, contractor’s personal service company) are non-UK resident and/or the work is not wholly carried out in the UK, how the ‘host employer’ rules in s689 ITEPA 2003 interact, and the impact of double tax treaties.

Highlights from the broader tax news for the week ending 20 March 2024, including: HMRC’s framework for large businesses; new secondary legislation applying across a range of areas, including the off-payroll rules; maps of investment zones; and updated guidance on genuine HMRC contact.

From 6 April 2024, the headline rate of NIC will fall from 10% to 8% for employees, and from 9% to 6% for the self-employed. The government will also consult on how it will abolish Class 2 NIC.

PAC has recommended more resources for HMRC so that it can meet its service standards. It has found that HMRC’s approach to off-payroll working is deterring legitimate economic activity.

A single determination of tax and NIC would simplify the offsetting process. The deemed employer should have the right to appeal against a determination.

Consultation on draft legislation and guidance for offsetting tax and NIC when an employment status determination is changed to ‘employed’.

HMRC has published guidelines to help organisations and contractors involved in off-payroll working (OPW) / IR35 understand what HMRC considers good practice.

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

National insurance contributions (NIC) will be reduced to 8% for the self-employed and to 10% for employees, and the flat rate class 2 NIC will be abolished for most self-employed, the chancellor has announced.

In this webinar, Mark Hammerton, Partner, Human Resources Practice Group of Eversheds Sutherland, covers determining employment status, and common misconceptions, to help you comply with IR35.

Join this webinar to discover the implications for contractors who work through personal service companies and get help determining your IR35 status. In addition, discover what the implications are for employers and if there any alternatives through this insightful webinar.

Employment tax specialist Kate Upcraft and Tax Faculty technical managers Anita Monteith and Caroline Miskin, explain the complexities of the Coronavirus Job Retention Scheme (CJRS) followed by an update on the latest payroll hot topics.

A representation dated 22 February 2024 to a consultation published by HMRC on 25 January 2024.

A representation dated 29 August 2023 to a consultation published by HM Treasury, HM Revenue & Customs and Department for Business & Trade on 6 June 2023.

A representation dated 14 June 2023 to a consultation published by HMRC on 27 April 2023.

A response dated 28 October 2022 to a review published by the Office of Tax Simplification on 31 August 2022.

Guidelines intended to help end clients understand what HMRC considers good or poor practice when preparing for and making status determinations for off-payroll workers, and working with others in the supply chain.

Guides on employment status and the taxation of intermediaries, including guidance on off-payroll working rules for public authorities, intermediaries in the public sector, intermediaries in the private sector, and employment intermediaries.

HMRC internal manual providing guidance on how to determine employment status, agency and temporary workers, managed service companies, intermediaries legislation, off-payroll working, and other topics.