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With the off payroll offset proposals very much welcomed by experts, this has now highlighted other areas of improvement that are needed.

The Association of Professional Staffing Companies (APSCo) and APSCo OutSource are warning that the complexities of taxing the income from off-payroll working could still result in double taxation.

They’ve also reiterated calls to define a Personal Service Company (PSC) as a company with one worker only supplying his own services through that entity.

Tania Bowers, Global Public Policy Director at APSCo, commented, “We recognise the need to introduce the Off Payroll set off and the proposals outlined are certainly a step in the right direction to ensuring fair taxes are being paid without the potential for double taxation inadvertently impacting the deemed employer, which can often be SME recruitment firms. However, this is a highly complex issue and we do feel more clarity is needed.

“Under the proposals, there is the potential that set off processes could be delayed due to appeals made by the worker or the intermediary.”

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Tania added, “Given the complexities in this issue, we are likely to see grounds for appeal submitted due to misunderstandings which will, ultimately, have a greater impact on the deemed employer.

“The fact that it is not retrospective has created the need for a two-tier system which accommodates zero tax payments for the worker (if they claim a refund) prior to 1st April 2024 and the set off mechanism post 1st April. This creates confusion for the supply chain and is likely to result in double taxation prior to the implementation of the set off mechanism.”

“The issue around data transfer and transparency across the supply chain also prevails. We believe that there needs to be a statutory obligation for information to be supplied prior to the start of an engagement to prevent individuals deliberately withholding information and ensure recruiters aren’t disadvantaged.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £125 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few
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