We have previously reported the release of a consultation document issued by HMRC entitled “Off-payroll working in the public sector: reform of the intermediaries legislation”
The consultation document proposes that where individuals offer services to public sector 'employers' through an intermediary, such as a limited company, it will become the public body's responsibility to operate the IR35 regime and pay the tax, rather than the individual/intermediary. This is intended to crack down on what is seen as widespread abuse of the IR35 system and resultant non-payment of tax.
We do wish to stress again that these proposals will not affect the operation of IR35 in the private sector.
The closing date for comments is 18 August 2016.
