Lords’ subcommittee criticises flawed off-working payroll rules regulation

The government has seriously neglected a basic constitutional principle in making Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 said the House of Lords’ economic affairs Finance Bill sub-committee. This statutory instrument extends changes to income taxation rules for employment intermediaries under the off-payroll working rules to National Insurance contributions but before it was laid the government became aware that the instrument has a flaw in it which unintentionally widened the definition of an intermediary.

Lord Bridges of Headley chair of the subcommittee said: ‘The moment the government knew there was a flaw with this statutory instrument it should have been withdrawn and corrected. Our committee couldn’t find any precedent for this breach of good government.

‘The government has now assured the committee that the regulations will be amended before they come into force in April 2021 so they fully reflect what the...