Business tax – policy paper

Off-payroll working in the public sector: reforming the intermediaries legislation

This document details the changes announced at Budget 2016 to reform the intermediaries legislation (known as IR35) for public sector engagements.

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The government announced at Budget 2016 that it will reform the intermediaries legislation (known as IR35) for public sector engagements. It will do this by moving the liability to pay the correct employment taxes from the worker’s own company to the public sector body or agency / third party paying the company. In partnership with stakeholders, HM Revenue and Customs will develop a new tool that will make the decision on whether or not the rules should apply as simple as possible and provide certainty. A formal consultation will be published later.