Calculating PAYE liabilities in cases of non-compliance for off-payroll working (IR35)

Consultation description: This technical consultation sets out the mechanism by which HMRC will be able to account for taxes already paid by individuals and their intermediary on income received from off-payroll working when recovering the tax due under PAYE from the employer.

The draft statutory instrument contains detailed provisions to be introduced in the Income Tax (Pay As You Earn) Regulations 2003 to allow the PAYE liability that is recovered from the deemed employer to be reduced by amounts of tax already assessed and/or paid by the worker and their intermediary. It also contains conditions under which it can apply, the mechanics of the recovery and the appeal rights associated with it.