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Understanding Off-Payroll Workers Legislation and How it Will Impact Your Institution

Understanding Off-Payroll Workers Legislation and How it Will Impact Your Institution

The Off-Payroll Workers Legislation Reform is set to hit in April 2017, and while university staff may be familiar with its predecessors - IR35 or Intermediaries Legislation - the new reform brings new challenges for universities.   

 

The new HMRC legislation aims to make sure that individuals providing services through a personal services company, or intermediary, who do the same job in the same manner as an employee, pay the same tax and national insurance.  Non-compliance with current tax rules costs the HMRC £440 million per year. Current legislation places responsibility to apply the rules on the intermediary or personal services company, however the new reform will change this.  From April 2017 this responsibility will move to public sector organisations (university, agency or other third party paying the worker).  This means your institution could be responsible for:

 

  • Determining whether the rules apply, and
  • Calculating, reporting and paying the relevant taxes if they do. 

 

To support members in addressing this new legislation, SUPC has developed a short webinar outlining the legislation, how you can determine which employees it applies to in your institution and how to mitigate the risks of the reform.  The webinar also presents one possible route to comply with this legislation via NEPRO, sole supplier on SUPC's Neutral Vendor Agreement for the Provision of Specialist Professional Services.   

 

To view the 25-minute webinar, click here.

 

To download some Frequently Asked Questions that members raised during the webinar and the presentation slides, click below.

 

If you have any additional questions, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.