GLOBAL PAYROLL MAGAZINE
77
“No PAYE offset will be available if HMRC cannot trace the worker or their personal service company (PSC ) on their systems, if HMRC cannot confirm that the PSC/ worker has paid any relevant taxes or employee’s NIC, or if the PSC or worker successfully appeals against an offset direction.”
This is good news but organisations that engage in this way and are or would be the deemed employer should ensure they review their processes and as a minimum make sure the information they hold on PSCs and workers, which HMRC requires to identify them on HMRC’s systems, is held. This will allow them to confirm whether, in the relevant circumstances, an offset would be available on a compliance review where HMRC believes there is an underpayment.
direction notice to the worker and intermediary if neither HMRC nor the deemed employer is aware of their current address, and permit appeals against direction notices to be made to HMRC in ways other than writing. No PAYE offset will be available if HMRC cannot trace the worker or their personal service company (PSC ) on their systems, if HMRC cannot confirm that the PSC/worker has paid any relevant taxes or employee’s NIC, or if the PSC or worker successfully appeals against an offset direction. In addition, on March 13, 2024, HMRC published ESM10037, ESM10038, and ESM10039. The published guidance is essentially the same as that published for consultation. However, it has been updated to affirm that payments on account are not regarded as taxes “paid”, to provide examples of taxes that cannot be included in set-off (such as the apprenticeship levy), and to confirm that, after set-off, HMRC will prevent the worker and the intermediary from receiving repayments or making claims for relief or deduction concerning amounts included in set-off.
Author: Susan Ball | RSM UK
Susan Ball is a partner at RSM UK, and she has
more than 30 years’ experience working extensively in the employment tax, investigations and
reward field. Susan is the past President of the Chartered Institute of Taxation and sits on its employment taxes committee.
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