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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For further information please contact:

Bronwyn Huband, KPMG Corporate Communications

M: 07342085193

E: bronwyn.huband@kpmg.co.uk

KPMG Press office:

T: +44 (0) 207 694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

Autumn Statement 2016

Autumn Statement 2016

The Autumn Statement took place on 23 November. KPMG's coverage is available from this hub.

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