When engaging off-payroll workers, different tax rules may be relevant depending on the engagement model adopted. There is a prescribed order for applying the different legislative regimes. IR35 should usually be considered first, and many businesses focus on IR35. However, when reviewing labour supply arrangements, particularly when seeking to minimise IR35 risks, businesses need to consider several tax regimes. Where individual workers are supplied through an agency, the onshore intermediaries’ rules need to be considered, even though primary responsibility for compliance lies with the agency. And for businesses in the construction sector, the construction industry scheme rules may also be relevant.
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When engaging off-payroll workers, different tax rules may be relevant depending on the engagement model adopted. There is a prescribed order for applying the different legislative regimes. IR35 should usually be considered first, and many businesses focus on IR35. However, when reviewing labour supply arrangements, particularly when seeking to minimise IR35 risks, businesses need to consider several tax regimes. Where individual workers are supplied through an agency, the onshore intermediaries’ rules need to be considered, even though primary responsibility for compliance lies with the agency. And for businesses in the construction sector, the construction industry scheme rules may also be relevant.
If you are not a subscriber, subscribe now to read this content.
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