HMRC offshore tax decision will affect 1,000s says MHA MacIntyre Hudson
HMRC has announced that from April 2014 workers engaged via offshore intermediaries will be brought into the UK tax net.
Alastair Kendrick, Tax Director at MHA MacIntyre Hudson, comments: “This change will affect thousands of people working across a number of sectors in the UK and earning over £50,000. For the employee, it means they will see a significant decrease in their take home pay and may consider looking elsewhere for employment.
“For employers, many will be unaware that they are employing UK based workers through an offshore intermediary and will need to ascertain where the requirement to pay PAYE and NICs will ultimately fall. Therefore, it is essential for these companies to urgently review their contracts with their employment agencies.
“Employment agencies should also be wary as they are likely to be the ones who will have to operate the PAYE and NICs – which is not only going to be an extra cost to them but also an increased administrative burden.”