HMRC given power to recover tax from parties other than employer in off-payroll working arrangements

Implementation date: 6 April 2021

The Income Tax (Pay As You Earn) (Amendment No.3) Regulations 2020 (SI 2020/1150) provide that where an employer has not deducted income tax under PAYE from payments made to an off-payroll worker, and there is no realistic prospect of recovering the tax from the employer within a reasonable time frame, HM Revenue and Customs (HMRC) can recover the tax from other parties within the labour supply chain, namely the agency with which the client contracts or the client for whom the work has been undertaken.