... meaning tax and National Insurance Contributions will be paid in a similar way to that of an employee.
HMRC has published draft regulations (the Social Security (Miscellaneous Amendments) Regulations 2017) which form part of these reforms and make provision for the payment of NICs. This follows draft legislation for the Finance Act 2017 published in December 2016.
The government is introducing reforms to this area in order to clamp down on the avoidance of tax and NICs as reported in a previous article. In the public sector, responsibility for operating off-payroll working rule and accounting for deduction will move to the engaging party.
It is very possible the reform will transpose to the private sector if deemed a success within the public sector. The draft regulations have been published for technical consultation which will close on 17 February 2017. The reform will take effect from 6 April 2017.
The following groups will be affected by the reforms:
These groups will need to prepare for the reforms in advance of the 6 April 2017 implementation date.