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Off-payroll Working

Question for Treasury

UIN 45213, tabled on 2 September 2022

To ask the Chancellor of the Exchequer, if he will take steps to provide (a) individuals and (b) companies with a certificate of compliance to prove they are IR35 compliant.

Answered on

7 September 2022

The off-payroll working rules (commonly known as IR35) have been in place for over twenty years and are designed to ensure that individuals working like employees but through their own company, usually a personal service company (PSC), pay broadly the same Income Tax and National Insurance contributions (NICs) as those who are directly employed.

Following reforms in 2017 and 2021, public authorities and medium and large-sized clients in the private sector are responsible for deciding if the off-payroll working rules apply to an engagement.

Organisations must take reasonable care when making status determinations under the rules and are already required to issue a Status Determination Statement (SDS) for all contractors determined to be working like an employee. Failure to take reasonable care will result in the organisation becoming responsible for the worker’s Income Tax and National Insurance Contributions.

HMRC has undertaken extensive activity to support organisations in operating the rules correctly and have published their compliance strategy for dealing with non-compliance.

Answered by

Named day
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