Off-payroll working set-offs under review

Views are sought on a legislative change to allow HMRC to account for taxes already paid by an individual and/or their intermediary when calculating a PAYE liability due by a deemed employer where an error has been made in applying the off-payroll working rules.

Current legislation does not allow HMRC to set off amounts of tax and National Insurance already paid by a worker and their intermediary against the PAYE liability of the deemed employer. Instead HMRC has implemented a process within its existing powers to notify workers and their intermediaries that they may be due a refund for taxes already paid on the engagement where contact information is available.

The proposed solution would potentially work in a similar manner to existing provisions in the PAYE Regulations SI 2003/2682 that allow the setting off of taxes already paid in particular circumstances. In essence new...