Off-payroll working in the public sector – HMRC guidance updated

HMRC has updated its guidance to clarify that the new off-payroll working in the public sector rules do not apply to private sector retail businesses that provide ophthalmic and pharmaceutical services.


The provisions in s6 and Sch 1 Finance Act 2017 bring in new rules for accounting for tax and NIC when a person works for a public sector body via a personal service company. The rules apply from 6 April 2017.


The change to HMRC’s guidance follows the government making a welcome last minute change to the ‘wash-up’ Finance Bill (now Finance Act 2017), as reported in our recent news item on our employee representations on Finance Bill 2017.


NIC also applies from 6 April 2017. See The Social Security (Miscellaneous Amendments No. 2) Regulations 2017, SI 2017/373.