Off Payroll Working In The Public Sector
As you may have seen, the Government announced at the Budget that it will reform the intermediaries legislation for public sector engagements. Liability to pay the correct employment taxes will move from the worker’s own company to the public sector body or agency or third party paying that company.
We thought it might be helpful to provide you with some more information about the change. The government has decided to reform the rules for the engagements in the public sector only from April 2017. Public sector bodies have a responsibility to taxpayers to ensure that the people working for them are paying the right tax.
We have published a short technical note to provide more information about the changes and we will publish a consultation before the summer. We will continue to talk with you and other stakeholders over the summer on the best way to implement this reform.