Clause 17 of Finance Bill 2024 gives HMRC the power to make regulations to address the over-collection of tax in cases of non-compliance with the IR35 rules (in other words, where the worker has incorrectly been treated as self-employed). HMRC have now published those draft regulations for consultation.
The draft instrument will insert new regs 72GA–72GC into the Income Tax (Pay As You Earn) Regulations, SI 2003/2682, to allow the PAYE liability that is recovered from the deemed employer to be reduced by amounts of tax already assessed and/or paid by the worker and their intermediary. It also sets out the conditions under which the new rules can apply, the mechanics of recovery and the associated appeal rights.
Separately, HMRC have published a new factsheet which provides an overview of the off-payroll working rules, the tribunals process and links to further help and support.
Clause 17 of Finance Bill 2024 gives HMRC the power to make regulations to address the over-collection of tax in cases of non-compliance with the IR35 rules (in other words, where the worker has incorrectly been treated as self-employed). HMRC have now published those draft regulations for consultation.
The draft instrument will insert new regs 72GA–72GC into the Income Tax (Pay As You Earn) Regulations, SI 2003/2682, to allow the PAYE liability that is recovered from the deemed employer to be reduced by amounts of tax already assessed and/or paid by the worker and their intermediary. It also sets out the conditions under which the new rules can apply, the mechanics of recovery and the associated appeal rights.
Separately, HMRC have published a new factsheet which provides an overview of the off-payroll working rules, the tribunals process and links to further help and support.
