To encourage compliance with the IR35 rules, the Regulations enable HM Revenue and Customs (HMRC) to recover tax from other parties within the labour supply chain where the employer has failed to deduct income tax from payments made to an off-payroll worker.
There should be no further delay in addressing the long-standing 'unfairness' of contractors paying less tax than employees in situations where their work should be classified as an employment relationship, the government has said.
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