The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Off-payroll working in the public sector - consultation an amended NICs regulations 30 January 2017
Draft secondary legislation for technical comment has been published to deliver reform of the intermediaries legislation on National Insurance Contributions (NICs) for off-payroll working in the public sector.
As announced at Autumn Statement 2016, the government will legislate to reform the intermediaries legislation (off- payroll rules) where the worker provides services in the public sector.
Responsibility for operating the off-payroll working rules, and deducting any tax and National Insurance Contributions (NICs) due, will move to the public sector body, agency or other third party paying an individual’s personal service company (PSC) or other intermediary.
Geographical extent - the regulations will come into effect from 6 April 2017 and apply to all four nations of the UK.
On 5 December 2016, the government published draft legislation for Finance Bill 2017 to reform the intermediaries legislation.
The Social Security (Miscellaneous Amendments) Regulations 2017 - draft secondary legislation, makes similar provisions for NICs.
The technical consultation will close on 17 February 2017. Please send any comments by email to off- payroll.consultation@hmrc.gsi.gov.uk.
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Off-payroll working in the public sector 6 February 2017
An ‘ Off-payroll working in the public sector ’ page has been launched on GOV.UK which provides guidance and links to other resources to assist with the changes to the way intermediaries legislation (IR35) is applied to off-payroll working in the public sector from 6 April 2017. Available from the page is guidance for fee-payers, Personal Service Companies (PSCs) and public authorities to use, and links to material such as the draft tax and NICs legislation and the technical note. The page will also cover key areas including:
Background to the reform Who will be affected
Public authorities definition When the reform will apply How the reform will work in practice What people can do between now and 6 April 2017 to prepare for the reform Responsibilities (Worker operating through an intermediary / Fee-payers / Public Authorities)
Employment Status Service A new optional Employment Status Service tool is expected to be made available by the end of February 2017. Users will be able to obtain the HMRC view of whether any current and prospective workers would fall within the off-payroll rules from 6 April 2017. This service will replace the existing Employment Status Indicator tool.
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