NumberMill comments on CFOs’ responsibilities following HMRC’s payroll arrangements
NumberMill has commented on chief finance officer responsibilities following on from recent comments by HMRC that the planned changes in the Public Sector regarding off payroll arrangements April 2017 will categorically not affect the private sector.
HMRC have commented that their "trajectory" is to remind chief finance officers of their fiduciary duties with regard to ensuring that the appropriate taxes are paid throughout the supply chain, according to NumberMill. Gross reporting as per the Intermediaries Onshore Finance Act 2014 was the first indication of this approach.
Many businesses engage contractors who operate as a director of a Personal Service Company (PSC) and in the past, paid no attention to their tax status. HMRC have suggested that the onus to undertake some basic checks could fall on the agency or engaging business. NumberMill says that such checks could include:
- Insisting on an independent IR35 review
- Proof of accountants - and that the accountants are members of a recognised institute eg. ACA, ACCA
-RTI and dividend proofs
HMRC have stated that it is not their intention to remove PSC's from the contracting sector, more to add a deeper level of self-regulation