PARLIAMENTARY WRITTEN QUESTION
Off-payroll Working (13 December 2022)

To ask the Chancellor of the Exchequer, what steps he is taking to clarify IR35 guidance on whether (a) workers, (b) end clients or (c) umbrella companies are liable to pay Employer's National Insurance Contributions and the Employer's Training Levy.

Asked by:
Sarah Green (Liberal Democrat)

Where a worker is engaged, via an intermediary, by a large- or medium-sized private or voluntary sector client or by a public body, and the off-payroll working rules apply to the engagement, it is the deemed employer who is responsible for deducting income tax and employee National Insurance contributions (NICs) from the payment to the worker’s intermediary. In this situation, the deemed employer is also responsible for paying employer NICs and Apprenticeship Levy, where applicable, on top of the payment to the worker’s intermediary. Guidance on this is available on GOV.UK.

Where a worker is employed by an umbrella company, the off-payroll working rules do not apply and the umbrella company is responsible for paying any employer NICs and Apprenticeship Levy due. HMRC has published guidance to help workers engaged by umbrella companies to understand how these arrangements work, how they can expect to be paid and how to challenge if unauthorised deductions are made.

Answered by:
Victoria Atkins (Conservative)
19 December 2022