HMRC hits back at criticism surrounding its IR35 support

HMRC

HM Revenue & Customs has hit back following criticism from recruiters late last week over confusion created around April’s changes to the tax status of interims and contractors working in the public sector.

From 6 April, public sector end clients will be responsible for determining whether a worker who operates through a personal service company or other intermediary is caught by IR35 or is genuinely self-employed. Where the worker is caught by IR35, the new rules will also make the fee payer, who will often be a recruitment agency, responsible for deducting and then paying the worker’s tax, National Insurance and employer’s NI.

On Friday, Recruiter reported about current widespread confusion around the changes, with HMRC coming in for criticism from agencies.

Claire Carter, director public service at Interim Partners, claimed HMRC had not provided the market with “the appropriate level of support and guidance” and criticised HMRC for the absence of its new online assessment designed to help determine a contractor’s IR35 status that was not yet ready. Meanwhile Matt Gascoigne, chief operating officer at public sector and not-for-profit recruiter GatenbySanderson, told Recruiter there had been “a degree of paralysis” as people awaited the online assessment tool.

In response to the criticism, a HMRC spokesperson told Recruiter that it is “untrue” to say it has not been providing help and support to public sector organisations and their suppliers.

“We continue to work closely with public sector organisations and their suppliers to ensure people have the right information ahead of 6 April,” said the spokesperson.

“The Employment Status Indicator Tool has been available to public and private sector organisations during private development and will be publicly available shortly.

“Since the government confirmed at Autumn Statement 2016 that reform of the off-payroll working rules in the public sector will be implemented on 6 April 2017, support materials, including draft legislation and guidance about the changes, have been published on GOV.UK.”

IPS faces £900k penalty for failing to co-operate with HMRC

A tax avoidance promoter whose schemes were used by locum doctors and nurses faces a £900k penalty for failing to co-operate with HM Revenue & Customs, the tax authority announced today [22 March 2024].

Legislation 22 March 2024

NHS partnership collaborates with specialist recruiter to reduce locum GPs

A new partnership aims to bring 1,000 senior doctors for the NHS to help the shortfall across the UK.

Contracts 13 March 2024
ceo founder lynis bassett and MD naomi howells

Social recruiting March/April 2024

Recruiters and their staff continue to donate money and time to charities. Take a look at a few of the many examples we’ve seen since the previous Recruiter

Lighter Side 4 March 2024
Smiling Young Businesswoman Shaking Hands With Female Executive At Job Interview-Image credit - Shutterstock-1376251985

Better Hiring Toolkit offers best practice resource for local authorities

A new toolkit aims to offer local authorities essential guidelines for better recruitment., with the uncovering of the highly controversial

4 March 2024
Top