Offshore Employment Intermediaries: HMRC consultation on measures designed to tackle tax avoidance when UK companies engage UK workers via offshore arrangements that are designed to avoid PAYE and NICs ended in October 2013. It has been decided to introduce simplified proposals.

Key features of the new measures include:

UK Continental Shelf: the measure includes special rules for where a person is employed on the UK Continental Shelf in the oil and gas industry by or through an offshore intermediary.

Agencies
The measure implements new rules where a worker is employed by or through an offshore intermediary:

Foreign employers

The National Insurance 'host employer' rule that applies where a person employed by a foreign employer works in the UK for a UK host business is being retained. However, it will be more simply worded and the hierarchy between this rule and the agency rule will be made clearer.

Background and current rules

PAYE

NICs

The next steps

The legislation to implement the certification scheme will form part of the NICs Bill. The NICs Bill was introduced into Parliament on 14 October 2013.

The draft taxation, record keeping, return requirements and penalties legislation will be introduced in Finance Bill 2014. Draft legislation, explanatory notes and guidance will be published in autumn 2013.

Links

Responses to the consultation on Offshore Employment Intermediaries