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

Barclays Leads Complaints List for Small Business Account Closures

1 Mins read
<?xml encoding=”utf-8″ ?????????> Out of the 413 complaints lodged with the Financial Ombudsman Service between April 2022 and September 2023 regarding small…
Editor's PickInvesting

Barclays Leads Complaints List for Small Business Account Closures

1 Mins read
<?xml encoding=”utf-8″ ?????????> Out of the 413 complaints lodged with the Financial Ombudsman Service between April 2022 and September 2023 regarding small…
Editor's PickInvesting

Barclays Leads Complaints List for Small Business Account Closures

1 Mins read
<?xml encoding=”utf-8″ ?????????> Out of the 413 complaints lodged with the Financial Ombudsman Service between April 2022 and September 2023 regarding small…
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 *