Supporting organisations to comply with changes to the off-payroll working rules (IR35)
HMRC has issued a briefing that covers compliance with changes to the off-payroll working rules (OP21).
Customers will not have to pay penalties for inaccuracies in the first 12 months relating to the OP21, regardless of when the inaccuracies are identified. HMRC have also confirmed that they will not be opening historic tax enquiries unless there is a reason to suspect fraud or criminal behaviour.
For organisations affected by the changes in OP21, HMRC outlines the principles for supporting these businesses and how they will intervene when they suspect non-compliance. They will support customers who are trying to do the right thing and will be contacting organisations to discuss how they are applying the changes.
- we will support customers who are trying to do the right thing and comply with the rules
- we will help customers meet their responsibilities under the off-payroll working rules
- where customers make a mistake, we will help them correct it
- we will check that mistakes are corrected
- we will identify and correct non-compliance with the off-payroll working rules
- we will challenge deliberately non-compliant customers
- we will challenge tax avoidance schemes that claim to avoid the off-payroll working rules or otherwise reduce the tax payable
- we will use a specialist team to carry out all our off-payroll working compliance activity
Link to briefing: https://www.gov.uk/government/publications/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35/hmrc-issue-briefing-supporting-organisations-to-comply-with-changes-to-the-off-payroll-working-rules-ir35
Published: 23 February 2021