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.
Guide lines are all very well. The problem is the agencies are not following them properly, or insisting on people joining another umbrella company which, surprise surprise, has fees involved that the agency then rake in.