HMRC has published regulations under ITEPA 2003 s 688AA which
provides the framework for the recovery of deemed employer PAYE from ‘a
relevant person’. The Income Tax (Pay As You Earn) (Amendment No. 3)
Regulations, SI 2020/1150
achieve this by adding new Part 4 Chapter 5 into the PAYE regulations (SI
2003/2682).
Where a deemed employer has failed to make income tax
deductions under PAYE from payments made to an off-payroll worker, and there is
no realistic prospect of recovering the outstanding tax from the deemed
employer within a reasonable period, the regulations will allow HMRC to recover
the tax from other parties within the labour supply chain. The new provisions
will apply from 6 April 2021, alongside the extension of the reformed IR35
rules to medium and large organisations in the private sector.
HMRC has produced a new factsheet
setting out support available to businesses which will be affected by the
changes to the off-payroll working rules from 6 April 2021. The factsheet
provides a table of support options for businesses and advisers, with links to
the most relevant guidance. HMRC has also updated its Important
facts for contractors guidance – part of its collection of resources to
help advisers communicate with clients on the April 2021 changes (available
via: bit.ly/IR35April21).
HMRC has published regulations under ITEPA 2003 s 688AA which
provides the framework for the recovery of deemed employer PAYE from ‘a
relevant person’. The Income Tax (Pay As You Earn) (Amendment No. 3)
Regulations, SI 2020/1150
achieve this by adding new Part 4 Chapter 5 into the PAYE regulations (SI
2003/2682).
Where a deemed employer has failed to make income tax
deductions under PAYE from payments made to an off-payroll worker, and there is
no realistic prospect of recovering the outstanding tax from the deemed
employer within a reasonable period, the regulations will allow HMRC to recover
the tax from other parties within the labour supply chain. The new provisions
will apply from 6 April 2021, alongside the extension of the reformed IR35
rules to medium and large organisations in the private sector.
HMRC has produced a new factsheet
setting out support available to businesses which will be affected by the
changes to the off-payroll working rules from 6 April 2021. The factsheet
provides a table of support options for businesses and advisers, with links to
the most relevant guidance. HMRC has also updated its Important
facts for contractors guidance – part of its collection of resources to
help advisers communicate with clients on the April 2021 changes (available
via: bit.ly/IR35April21).
