Off-payroll working: calculation of PAYE liability in cases of non-compliance
Read the full outcome
Detail of outcome
The majority of respondents supported the government’s policy intent to allow HMRC to account for taxes already paid when calculating a deemed employer’s PAYE liability under the off-payroll working rules.
Legislation will be included in the next Finance Bill, and will come into effect from 6 April 2024.
You can read about the policy development in the summary of responses published on this page.
You can also read the tax information and impact note.
Original consultation
Consultation description
The purpose of this consultation is to set out a potential legislative change to address the over-collection of tax in relation to non-compliance with the off-payroll working (OPW) (IR35) rules and seek to ensure the option works effectively and understand how this would impact different parties in the labour supply chain.
This consultation will be of interest to people who work through their own intermediary (for example, a personal service company), medium and large-sized clients, public authorities, agencies, partnerships and individuals who engage people who work through their own intermediaries, accountants and other agents representing people who work through intermediaries or representing engagers of people working through intermediaries, and HR managers and those who deal with recruitment processes and payroll.
Documents
Updates to this page
Last updated 22 November 2023 + show all updates
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Published outcome and summary of responses to the consultation.
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First published.