HMRC Accelerates Off-Payroll Working Rule Enforcement

If you are looking back on the last 12 months and thinking that HMRC have been rather quiet about the April 2021 Off-Payroll Working Rules reform, then you would be right, but not for much longer. The Off-Payroll Working Rules are part of HMRC’s tax avoidance legislation for Individuals being paid for their services to an End-Client through an Intermediary, sometimes collectively referred to as ‘IR35’. Since 6 April 2021, the End-Client has been responsible for determining whether the Individual is deemed to have employment status, notwithstanding the presence of an Intermediary, and making PAYE deductions at source if so.

HMRC confirmed early on that the first 12 months following the 2021 reform would be a period of leniency, focused on education rather that penalties. Fines have been enforceable for deliberate non-compliance, however, innocent mistakes and misunderstandings have benefited from a financial grace period.

From 6 April 2022, financial penalties are enforceable regardless of whether non-compliance is intentional or not.

Our Acuity Employment Team are highly experienced at supporting IR35 compliance and, with increased penalties on the horizon, now is the perfect time to get in touch.

If you have any further queries or would like further advice on the above, please feel free to contact a member of the Employment Team.