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Controversial changes to off-payroll working (IR35) rules are set to come into force in April 2021, after MPs ignored a call to delay the changes until 2023.
Changes to the way IR35 rules are applied in the private sector were originally penned to take effect in April 2020, before pandemic-related uncertainty forced a stay of execution from lawmakers.
HMRC has sent a letter to around 1,500 GlaxoSmithKline contractors accusing them of being ‘disguised employees’ and ordering them to pay more tax under IR35 rules.
As the taxman ramps up the aggressive campaign against contractors, the letter was reportedly sent to contractors in different departments at the multinational pharmaceutical company.
HMRC’s letter says that in the 2018/19 tax year, their “view is that the contract between your PSC and GlaxoSmithKline (GSK) comes under the off-payroll working rules ‘IR35’.”
