‘HMRC to review off-payroll legislation’, says FCSA
Following ‘a very positive and constructive’ meeting with HMRC officials last week regarding the recent issues emerging out of off-payroll reforms, FCSA CEO, Phil Pluck, and Chair, Chris James, announced that HMRC would issue a statement acknowledging industry concerns.
“In short they accepted that there is a clear problem with the legislation as it currently stands, surrounding the definition of ‘intermediaries’ and the resulting impact on who is and isn’t required to make payroll deductions from payments moving through the supply chain,” the FCSA reported.
“HMRC will be working swiftly to address the issues and share our view that primary legislation via the Finance Bill is almost certainly the route to doing so. In the meantime, they fully understand that the sector needs reassurance and as a result will be issuing a statement tomorrow to acknowledge the need to reassure the market and its contractors.
“FCSA, on behalf of its members, is delighted that HMRC are treating this matter with urgency and we have come away with a very real sense of confidence that the matter will be resolved in advance of the IR35 changes next year.”
HMRC has now released an official statement which can be viewed at https://www.fcsa.org.uk/ir35-update-hmrc-issues-statement-on-interpretation-of-section-61o-and-conditions-where-the-intermediary-is-a-company/