Off payroll, and in the news

News that an estimated 131 freelancers at the BBC could be offered staff contracts as a result of an internal tax review comes as no surprise given the recent media discussions on the moral aspects of the payment of tax. Other stories in the press on the use of off-shore umbrella companies meaning that payments of national insurance contributions (NICs) are not made have brought the issue to the forefront of the minds of many in the recruitment industry.

The government’s action in respect of ‘off-payroll’ contractors in the public sector on assignments of more than 6 months who earn in excess of £220 a day is beginning to take effect across all sectors in which government departments, executive agencies or non-departmental public bodies have a presence.

It doesn’t end here! Shortly a response is expected to the Treasury consultation on “Controlling Persons”, which ended in August, which would require those contractors who have significant control of an organisation’s budget or workforce to be paid subject to PAYE income tax and NICs.

How will this work in the context of the recruitment supply market?

All of these areas and the questions that they raise were examined at the Lawspeed ‘Knowledge is Power’ seminar at the London Chamber of Commerce.

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