We are aware of concerning HMRC’s approach to ongoing off-payroll worker reviews and the possibility to offset any taxes. This has seen HMRC contacting taxpayers, who are currently undergoing an employer compliance review, to delay settlement of cases pending the outcome of a consultation process (now closed).
We understand that a decision on how to proceed with any new legislation has not yet been decided upon. It is expected that any new legislation will come into effect from April 2024, but we may hear more on 22 November 2023, the date of the Autumn Statement. However, the proposed set-off arrangements may help those who are faced with significant liabilities.
We are aware that HMRC has paused current reviews where the amount of tax due has been determined, and where:
- The taxpayer has acknowledged in writing an error in applying the off-payroll worker rules; and
- The deemed employer’s gross liabilities have been agreed (including any penalties which will form part of the settlement).
In addition, HMRC will require details of the personal service company (PSC) and the worker’s full name and National Insurance number to be able to verify any tax and NICs which could be available for set-off.
If you have any questions concerning how you manage your off-payroll worker arrangements, or settle any historic liabilities with HMRC, please contact a member of our Employment Taxes team.