HMRC OP21 Policy paper: change to intermediary

Technical changes to make sure off-payroll working legislation operates as intended

HMRC have released a policy paper on the ‘Technical changes to make sure off-payroll working legislation operates as intended’. This is the update that was promised by the Financial Secretary to the Treasury on 12 November 2020 – loosely regarding the unintended consequence that umbrella companies would be brought into scope.

This measure will:

  • address an unintended widening of the conditions where an intermediary is a company
  • improve the operation of the rules by extending the provision of information to the intermediary, as well as the worker
  • improve the operation of the rules by extending the consequences of providing fraudulent information to any UK-based party in the labour supply chain

A technical change to the off-payroll working rules is being made to ensure the legislation operates as intended from 6 April 2021 for engagements where an intermediary is a company. The change will address an unintended widening of the conditions of an intermediary, which went beyond the intended scope of the policy.

Proposed revisions

Legislation will be introduced in Finance Bill 2021 to amend ITEPA 2003 and relevant National Insurance Contributions regulations.

Published: 3 March 2021

https://www.gov.uk/government/publications/technical-changes-to-make-sure-off-payroll-working-legislation-operates-as-intended/technical-changes-to-make-sure-off-payroll-working-legislation-operates-as-intended