PAYE liability of employer reduced if mistake applying rules has been made
The government has said it is tweaking the IR35 rules in documents published alongside today’s autumn statement.
Chancellor Jeremy Hunt junked his predecessor’s plans to reform IR35 last year after Kwasi Kwarteng said in last September’s mini-Budget the off-payroll tax rules would be ditched in April this year.
The introduction of IR35 in April 2021, delayed by a year because of the pandemic, was met with concern in the construction sector, which is heavily reliant on freelancers to provide technical expertise both on and off-site.
In documents published by the Treasury today, a note on IR35 says: “The government will legislate in the Autumn Finance Bill 2023 to allow HMRC to reduce the PAYE liability of a deemed employer to account for taxes paid by a worker and their intermediary on payments received where an error has been made in applying the off-payroll working rules.”
Kwarteng has said scrapping controversial reforms to the tax status of self-employed workers would free up time and money for businesses.
Autumn Statement 2023 coverage
>> Hunt slashes taxes as OBR sharply downgrades growth forecast
>> Hunt announces £110m nutrient mitigation fund to ‘unlock 40,000 homes
>> Government promises planning reforms to speed up decision-making
>> Autumn statement 2023: Key measures at a glance
>> Autumn statement 2023: Industry reacts
>> Developers to be offered ‘premium planning service’ to speed up council decisions
No comments yet