The Autumn Statement, amongst the detail, included reference to the IR35 Offset mechanism - which will go ahead from 6 April 2024.
This is positive news for the Contract Sector as until now the exact date of commencement had not been confirmed and this should provide some relief.
Essentially, this offset helps to prevent the double taxation of IR35 and will allow HMRC to reduce the PAYE liability of a deemed employer to account for taxes paid by a worker and their intermediary on payments received where an error has been made in applying the off-payroll working rules.
For more information, HMRC's guidance has been updated with some greater detail on how this will work.
Further detail on the IR35 Offset mechanism included in the Autumn Statement
By Jennie Brown, Tax Partner
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