16 May 2023 
Julia Ascott, Employment Taxes Specialist
You may be aware from our last TaxHE publication, that HMRC issued a raft of consultations. One of these included Off-payroll working (IR35) - calculation of PAYE liability in cases of non-compliance. This relates to individuals who provide their services through an intermediary of which they are typically the owner/director (with more than 5% of the share capital).
Currently, if an arrangement is treated as self-employed but, after (typically HMRC) review, is found to be employed/within scope of the IR35 rules, any tax the intermediary has paid on the income could not be taken into account when calculating the taxes due to HMRC by the deemed employer.
New proposals will allow for Corporation Tax, income tax and employee NIC paid by the intermediary to be offset against the tax and employee NIC duties for the deemed employer (no offset is available for Apprenticeship Levy and employer NIC).
BUFDG will be responding to this consultation, however, if you would like more information on the proposals, we would recommend this article.
