""As many other organisations in both the public and private sectors have discovered, the IR35 rules are complex," he said. "But we accept that the mistakes that came to light should not have been made. Our focus has been to resolve the issue with HMRC and the Welsh Government, taking advice from legal and tax experts to inform our decisions.""
""Our processes have now been changed. We are no longer using off-payroll contractors, and our default position is that we should not use them in the future.""
Natural Resources Wales accepted responsibility for historic errors in assessing contractor employment status under IR35 and agreed a £14,631,191.13 settlement with HMRC, including a £2.9 million penalty suspended for 12 months. The liabilities arose from incorrect determinations for contractors engaged between 2017 and recent years after off-payroll reforms shifted assessment responsibility to public sector bodies. NRW has changed its processes, stopped using off-payroll contractors, and intends not to use them going forward. The organisation sought legal and tax advice, and senior leadership described the IR35 rules as complex while committing to tighten internal controls. Compliance experts warned the case highlights broader sector struggles with IR35 interpretation.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]