The draft legislation appears to suggest that determinations need to be served on or after 6 April 2024 in order for set-off to be available, which would mean it would not apply for many open compliance settlements going back to 6 April 2017. Excluding only determinations that have become final (and are not under appeal) would be better, suggests the CIOT.
Employers also ought to be able to request set-off where a letter of offer has been received by HMRC but not finalised and agreed by all parties before 6 April 2024.
Separate direction notices should be sent to the deemed employer (rather than combining directions into a single notice), to make it easier for the deemed employer to check whether each notice is correct.
The deemed employer should have a right to appeal the set-off direction figure, given that the employer clearly has a financial interest in the set-off amounts.
The CIOT also comments on draft guidance which is destined for HMRC’s Employment Status Manual.
The draft legislation appears to suggest that determinations need to be served on or after 6 April 2024 in order for set-off to be available, which would mean it would not apply for many open compliance settlements going back to 6 April 2017. Excluding only determinations that have become final (and are not under appeal) would be better, suggests the CIOT.
Employers also ought to be able to request set-off where a letter of offer has been received by HMRC but not finalised and agreed by all parties before 6 April 2024.
Separate direction notices should be sent to the deemed employer (rather than combining directions into a single notice), to make it easier for the deemed employer to check whether each notice is correct.
The deemed employer should have a right to appeal the set-off direction figure, given that the employer clearly has a financial interest in the set-off amounts.
The CIOT also comments on draft guidance which is destined for HMRC’s Employment Status Manual.
