HM Revenue & Customs has recently released its digital tool to assist employers in the determination of an employee’s status when employed through an intermediary. This area is known as “Off Payroll Working” or IR35.
Within areas of the public sector the accuracy and legitimacy of results have already been questioned. However, HMRC have clarified that it will stand by the results the tool called the “Employment Status Service” (ESS) and the outcomes it is producing.
There were concerns, especially from managers in the NHS as when employing contractors HMRC unofficially were unwilling to back up the solutions results in writing.
HMRC confirmed that for several months the ESS has been extensively tested and they had specifically worked with effected parties on its development and confirmed any results achieved through the process would be honoured as HMRC threw its weight behind its solution and stood by its results.
An HMRC spokesman re-confirmed the position: “It remains the responsibility of individual engagers to understand and decide how the rules apply to the individuals they engage.” As such we expect to see further feedback and issues/queries as the tool becomes more thoroughly used in mainstream public sector areas.
