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Written question asked by Anneliese Dodds (Labour) on Monday, 3 December 2018, in the House of Commons. It was due for an answer on Thursday, 6 December 2018 (named day). It was answered by Mel Stride (Conservative) on Thursday, 6 December 2018 on behalf of the Treasury.

Off-payroll Working

Question

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the Real Time Information system on the recording of IR35 for employees for tax purposes.

Answer

HMRC began the phased introduction of Real Time Information (RTI) in 2012. Under RTI, information about tax and other deductions under the PAYE system is transmitted to HMRC by the employer every time an employee is paid.

Since April 2014 all employers have been required to report in real time with 1.9 million schemes covering 48 million employees now reporting through RTI.

HMRC’s analysis of PAYE data, submitted through RTI, for the first 12 months since April 2017 indicates the reform to the off-payroll working rules (often known as IR35) in the public sector has raised an additional £550 million in income tax and NICs in its first year.

RTI is a proven and effective tool for the monitoring of PAYE data including those public sector engagements to which the off-payroll working rules apply.

Secondary information

Type
Written question
Reference
198383
Session
2017-19
Subjects
PAYE Standards Off-payroll working
Link
View this Written question on www.parliament.uk