AS16:Public sector employment rules increase complexity | KPMG | UK
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Autumn Statement 2016: Public sector employment rule changes will increase complexity and create uneven playing field

AS16:Public sector employment rules increase complexity

Comment on the off-payroll working rules confirmed in the Chancellor’s Autumn Statement.


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Commenting on the off-payroll working rules confirmed in the Chancellor’s Autumn Statement, Colin Ben-Nathan, tax partner at KPMG, said:

“The Government has decided to press ahead with reform to the off-payroll working rules from April 2017.  From this point the public sector (or an agency in the supply chain) will be required to deduct tax at source where the IR35 rules apply, rather than this being the responsibility of the worker’s personal service company. 

“All of this will add to the administrative burden and cost for the public sector, workers and HMRC alike, particularly with the public sector now having to judge whether the IR35 rules apply, operate deduction at source (particularly where workers’ personal service companies are engaged via agencies) and deal with inevitable disputes with workers on whether deduction should apply.”


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