HMRC publishes advice on how to meet new tax rules on self-employed drivers

Jan 2, 2021

Advice aimed at helping operators stay on the right side of new tax laws has been published by HMRC today (15 February), writes Carol Millett.

The briefing document sets out how it will monitor organisations engaging drivers and other contractors who work through their own limited company when new tax rules kick in.

Under the updated IR35 rules, from 6 April large and medium-sized haulage companies – with net turnover of above £10m or 50 or more staff – will no longer be able to hire drivers that work as limited companies.

Instead drivers will need to be employed as a PAYE worker – either by the haulier, the agency or via an umbrella company.

An HMRC spokesperson said: ‘Today’s publication explains how we will continue to support organisations to comply with the off-payroll working rules, once they take effect on 6 April 2021.

‘It also shows what HMRC will do to identify and step in where organisations deliberately try to avoid paying what is due under rules.’ Click here for more information.

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