[UK] Suggested changes to offsets under off-payroll working rules

In the UK, ICAEW’s Tax Faculty has responded to HMRC’s consultation on draft legislation and guidance relating to changes to the off-payroll working (IR35) rules, ICAEW reports.

The draft legislation allows HMRC to direct that a deemed employer’s PAYE liability may be reduced by income tax and NIC paid by a worker and/or their intermediary. The amount offset is HMRC’s best estimate. The payee has the right to appeal against the direction.  

The response, in full, can be read here.

Tax Faculty has reportedly recommended that a single determination covering both tax and NIC should be made. It says the draft legislation appears to suggest that income tax and NIC should be set off separately and states that deeming NIC to be a tax for this purpose would simplify the offsetting process, particularly if tax is an overpayment and NIC an underpayment, or vice versa. 

Additionally, the Tax Faculty recommended that the payer should be given the right to appeal against the determination and that HMRC explain how it has arrived at its best estimate of the tax and NIC to be offset.  

Further information is available on ICAEW’s webpage Off-payroll working and IR35. 

Source: ICAEW

In the UK, ICAEW’s Tax Faculty has responded to HMRC’s consultation on draft legislation and guidance relating to changes to the off-payroll working (IR35) rules, ICAEW reports.

The draft legislation allows HMRC to direct that a deemed employer’s PAYE liability may be reduced by income tax and NIC paid by a worker and/or their intermediary. The amount offset is HMRC’s best estimate. The payee has the right to appeal against the direction.  

The response, in full, can be read here.

Tax Faculty has reportedly recommended that a single determination covering both tax and NIC should be made. It says the draft legislation appears to suggest that income tax and NIC should be set off separately and states that deeming NIC to be a tax for this purpose would simplify the offsetting process, particularly if tax is an overpayment and NIC an underpayment, or vice versa. 

Additionally, the Tax Faculty recommended that the payer should be given the right to appeal against the determination and that HMRC explain how it has arrived at its best estimate of the tax and NIC to be offset.  

Further information is available on ICAEW’s webpage Off-payroll working and IR35. 

Source: ICAEW