HMRC IR35 legislation has been in place since 2000, but non-compliance is widespread. HMRC estimate that only 10% of those who should be applying the rules do so, which will cost the Exchequer £1.3 billion in 2023/24. This deprives vital public services of important funds and is unfair to taxpayers who are complying with the rules.
Whilst the compliance of PSC workers has been a relatively mute subject for the last 20 years, HMRC have now realised there is a significant need for focus and attention on the management of this area of taxation, more specifically in relation to employers national insurance contributions.
With such a significant growth in the number of £multi-billion engineering projects across the UK, there will always be a requirement for the engagement of a highly skilled and flexible work force that is prepared and willing to move from project to project.
It is essential that this workforce becomes more educated and compliant with the options that are available to them if they wish to remain off-payroll for the duration of their assignments.