Editor's PickInvesting

UKRI hit with £36m IR35 bill, taking non-compliance in public sector to £300m

1 Mins read

<?xml encoding=”utf-8″ ??>

Non-departmental funding body UK Research and Innovation (UKRI) must pay HM Revenue & Customs (HMRC) £36m in back-dated tax.

As reported in Computer Weekly, UK Research and Innovation (UKRI), revealed in its annual accounts for 2021/21 that HMRC deemed that it had misclassified contractors’ IR35 status and as a result, owed £36m in tax.

UKRI is a body sponsored by the Department for Science, Innovation and Technology (DSIT). It is the latest public sector body to have mismanaged the off-payroll working rules.

The tax bills issued to public sector bodies due to non-compliance now amount to approximately £300m.

IR35 specialist Qdos CEO, Seb Maley, commented: “Public sector bodies have now been hit with around £300m worth of IR35 bills. It’s astonishing. These bodies should be leading by example, showing private sector businesses how to successfully manage the off-payroll working rules.

“I’m not sure what’s more worrying – the sheer size of this bill or the fact that it’s something we’ve come to expect in the public sector. And I can’t help but wonder who’s next.

“It’s difficult not to see the irony in this one. As a body that champions innovation, getting to grips with the off-payroll working rules shouldn’t be an issue for UKRI in theory.

“It’s wooden dollars in the public sector, but if a private sector business was hit with a £36m bill, it could be curtains. With this in mind, private sector firms must prioritise their compliance.”

Related posts
Editor's PickInvesting

Record profit for Sir Gerald Ronson’s forecourt empire

2 Mins read
Sir Gerald Ronson’s forecourt empire has delivered a record profit, with the property tycoon’s service station business now valued at more than…
Editor's PickInvesting

Banning WFH is lunacy, and the politicians out of touch enough to mandate it are too

4 Mins read
Let’s get something straight right at the outset: The idea of banning working from home is not merely daft, not a bit…
Editor's PickInvesting

Banning WFH is lunacy, and the politicians out of touch enough to mandate it are too

4 Mins read
Let’s get something straight right at the outset: The idea of banning working from home is not merely daft, not a bit…
Power your team with InHype
[mc4wp_form id="17"]

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *