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Off-payroll rules: NICs

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HMRC has published Regulations which will introduce changes to National insurance legislation to reflect the revisions to the off-payroll working rules for medium and large organisations outside the public sector from 6 April 2021.

The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations, SI 2020/1220, will amend the Social Security Contributions (Intermediaries) Regulations, SI 2000/727 to mirror the equivalent income tax changes to the off-payroll working rules from 6 April 2021. Key changes include:

  • where a worker’s services are provided through an intermediary to a medium or large client outside the public sector, responsibility for applying the rules is moved from the intermediary to the client, agency or third party paying the intermediary; and
  • where a deemed employer has failed to make NICs deductions under PAYE from payments made to a worker’s intermediary, and there is no realistic prospect of recovering the outstanding NICs liabilities from the deemed employer within a reasonable period, HMRC will be able to recover the unpaid NICs from other parties within the labour supply chain.
Issue: 1509
Categories: News