Reports suggest that HMRC is set to end it’s relaxed stance on penalties for errors on IR35 employment assessments as well as other off-payroll mistakes.
IR35 experts and specialist advisers have reported that HMRC has sent out compliance letters to oil and gas companies as well as larger businesses in the financial sector. In these letters, HMRC has queried the businesses’ application of the off-payroll rules.
The April bulletin by HMRC for employers stated that year-long period of leeway given to businesses who make mistakes when applying the off-payroll rules would be ending imminently and that the collecting of penalties would resume.
In April 2021, the responsibility for determining a contractor’s employment status for tax purposes shifted from the contracts personal service company to the large, medium-sized or voluntary organization which engaged them.
Contractors working for smaller organisations retain the responsibility for determining their status for each of their contracts.
Latest Articles
EU Implements New Digital Measures for VAT Compliance. Growing Pains Ahead?International Trade Week Presents New Opportunities and Training for BusinessesBudget 2024 Summary: Key Tax Changes and Challenges for Businesses and IndividualsK2 Accountancy Group: Driving Business Growth in Nottingham and NottinghamshireK2 Accountancy Group: Helping Businesses Thrive in Ilkeston and Derbyshire