Letter re off-payroll from HMRC

Dave Chaplin made this Freedom of Information request to Oxford Health NHS Foundation Trust as part of a batch sent to 207 authorities

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Waiting for an internal review by Oxford Health NHS Foundation Trust of their handling of this request.

Dear Oxford Health NHS Foundation Trust,

The Off-payroll legislation was introduced in Chapter 10 of the Income Tax (Earnings and Pensions) Act 2003, with the new legislation going live from April 6th 2017. This new legislation overrode, in the public sector, the existing Intermediaries Legislation (Chapter 8, ITEPA).

The new legislation is here:
https://www.legislation.gov.uk/ukpga/201...

Around July 2018 HMRC sent your body a letter asking for information related to “Checking compliance with the rules from April 2017”

For easy identification, a copy of the letter is as follows:

-- Letter start --

Off Payroll Reform in the Public Sector
Section 61M Chapter 10 ITEPA 22003 and Regulation 13 Social Security (Miscellaneous Amendments No.) Regulations 2017

Following the introduction of chapter 10 ITEPA 2003 and certain amendments to chapter 8 ITEPA 2003 (“IR35”), new rules apply in relation to off-payroll working in the public sector from 6 April 207. Where individuals work and are paid through their own intermediary, public authorities as defined in the legislation) are now responsible for deciding whether the rules apply. Where a person is assessed as being with the new rules, the public authority agencies and third parties paying the fee for the services of the worker must operate tax, NICs and operate the Apprenticeship Levy.

I would like to check your compliance with the new legislation, including any systems you have introduced to help you decide whether the offpayroll rules should apply when engaging workers via their own intermediary (either directly or via an agency or other labour provider). Such an intermediary will often be a ‘personal service company’, but as the legislation also applies where a worker is engaged via a partnership or another person, I will use the terms ‘PSC or other intermediary’ and ‘PSC etc’ in this letter.

I have listed the information we need below and would be grateful for your response by 31 August 2018. If the amount of information I have requested will make this difficult, please contact me to discuss how this can be managed.

Checking compliance with the rules from April 2017

1. Please describe the steps you took prior to April 2017:
i. to review the off-payroll engagement of PSCs or other intermediaries, to decide whether the off-payroll rules would apply
ii. please include an explanation of any different or additional steps taken in relation to PSCs etc that you engaged via an agency or other labour provider.

2. If different from 1 above, please describe the systems / processes currently in place to decide whether the off-payroll rules apply to PSCs etc, whether you engage them directly or via an agency or other labour provider. Please provide a copy of any internal guidance / operating procedures for your staff, and comment on:
i. who is responsible for carrying out the checks and approving decisions
ii. whether the Check Employment Status for Tax tool (CEST) is used to inform decisions as to whether the rules apply, and
iii. how you ensure compliance where the PSC is engaged via an agency or other labour provider.

3. For the tax year 2107/2018, if you directly engaged with and paid any worker’s own PSC or other intermediary, please tell us:
i. the total number of such PSCs etc that you engaged directly
ii. the number of such PSCs etc that you decided were within the scope of the legislation
iii. if different from (ii), the number of such PSCs etc that have been subject to deduction of tax and NIC and included in an RTI submission
iv. the number of such PSCs etc that you decided were outside the scope of the legislation
v. the names, addresses and a brief description of the worker role / nature of services provided by the PSCs etc within (iv) above.

4. For the tax year 2017/18, if you were invoiced by any agency or other labour provider for services via a worker’s own PSC or other intermiary, please provide the name of each such agency or other labour provider and, or each of them, please tell us:
i. the total number of such PSCs etc supplied by that agency / labour provider
ii. the number of such PSCs etc that you decided were within the scope of the legislation
iii. whether you told the agency / labour provider that the rules applied for every PSC etc within (ii) above and if not, please explain why not)
iv. the number of such PSCs etc, that you decided were outside the scope of the legislation
v. the name, addresses and a brief description of the worker role / nature of services provided by the PSCs etc within iv) above.

5. Please identify any workers / PSCs etc that you decided were within the off-payroll rules, which have subsequently been engaged / paid via umbrella companies. Do you have any policy in place that encourages the use of umbrella companies for those found to be within the rules?

6. For those not working through umbrella companies, have any workers that previously worked through their own PSC etc subsequently entered into employment contracts with your group?

7. The offpayroll rules do not apply where a public authority has fully contracted out servicces to a third party e.g. an outsourcing company operating under a contract where the workers do not personally provide their services to the public authority. If you believe this applies to you, please provide an explanation for the affected contract(s).

More information about the check

I enclose factsheet CC/FS1c ‘General information about compliance checks into certain large and complex businesses’. Please take time to read this, it gives you more information about this type of check. I also enclose factsheet CC/FS22 ‘Sending us electronic records’.

If you have any questions, please contact me using the details shown at the top of this letter.

-- Letter end --

Please can you provide:

1. Confirmation as to whether you received the letter
2. Confirmation as to whether you responded to the letter to HMRC.
3. Confirmation as to whether you provided ANY or all of the information to HMRC.
4. A copy of your response to that letter with the following direction: Instead of the exact answers for 3(v) and 4(v) (which are likely to be confidential) please instead tell us the number of items on those lists.

If the FOI time limit of 3.5 hours is such that not all of these records can be obtained in the time limit of 3.5 hours, then please provide as much as possible until the time limit is reached. Thank you.

Yours faithfully,

Dave Chaplin

Foiarfi (RNU) Oxford Health, Oxford Health NHS Foundation Trust

1 Attachment

Dear Dave Chaplin

 

Thank you for your email requesting information regarding that noted
above.

 

We are treating your correspondence as a request for information under the
Freedom of Information Act 2000.

You should expect to receive a further reply from us within 20 working
days from the day when your request was originally received by this
Department.

 

 

Kind regards

 

Carol Embriaco on behalf of

 

Mark M. Underwood
Head of Information Governance

 

IM&T Department, Oxford Health NHS Foundation Trust

The White Building, Littlemore MHC, 33 Sandford Road, Oxford, OX4 4XN
direct dial: 01865 902554 
email: [1][email address]

 

[2]cid:image001.png@01D3E227.25D081E0

 

 

 

 

From: Dave Chaplin <[FOI #545054 email]>
Sent: 15 January 2019 06:16
To: Foiarfi (RNU) Oxford Health <[email address]>
Subject: Freedom of Information request - Letter re off-payroll from HMRC

 

Dear Oxford Health NHS Foundation Trust,

The Off-payroll legislation was introduced in Chapter 10 of the Income Tax
(Earnings and Pensions) Act 2003, with the new legislation going live from
April 6th 2017. This new legislation overrode, in the public sector, the
existing Intermediaries Legislation (Chapter 8, ITEPA).

The new legislation is here:
[3]https://www.legislation.gov.uk/ukpga/201...

Around July 2018 HMRC sent your body a letter asking for information
related to “Checking compliance with the rules from April 2017”

For easy identification, a copy of the letter is as follows:

-- Letter start --

Off Payroll Reform in the Public Sector
Section 61M Chapter 10 ITEPA 22003 and Regulation 13 Social Security
(Miscellaneous Amendments No.) Regulations 2017

Following the introduction of chapter 10 ITEPA 2003 and certain amendments
to chapter 8 ITEPA 2003 (“IR35”), new rules apply in relation to
off-payroll working in the public sector from 6 April 207. Where
individuals work and are paid through their own intermediary, public
authorities as defined in the legislation) are now responsible for
deciding whether the rules apply. Where a person is assessed as being with
the new rules, the public authority agencies and third parties paying the
fee for the services of the worker must operate tax, NICs and operate the
Apprenticeship Levy.

I would like to check your compliance with the new legislation, including
any systems you have introduced to help you decide whether the offpayroll
rules should apply when engaging workers via their own intermediary
(either directly or via an agency or other labour provider). Such an
intermediary will often be a ‘personal service company’, but as the
legislation also applies where a worker is engaged via a partnership or
another person, I will use the terms ‘PSC or other intermediary’ and ‘PSC
etc’ in this letter.

I have listed the information we need below and would be grateful for your
response by 31 August 2018. If the amount of information I have requested
will make this difficult, please contact me to discuss how this can be
managed.

Checking compliance with the rules from April 2017

1. Please describe the steps you took prior to April 2017:
i. to review the off-payroll engagement of PSCs or other intermediaries,
to decide whether the off-payroll rules would apply
ii. please include an explanation of any different or additional steps
taken in relation to PSCs etc that you engaged via an agency or other
labour provider.

2. If different from 1 above, please describe the systems / processes
currently in place to decide whether the off-payroll rules apply to PSCs
etc, whether you engage them directly or via an agency or other labour
provider. Please provide a copy of any internal guidance / operating
procedures for your staff, and comment on:
i. who is responsible for carrying out the checks and approving decisions
ii. whether the Check Employment Status for Tax tool (CEST) is used to
inform decisions as to whether the rules apply, and
iii. how you ensure compliance where the PSC is engaged via an agency or
other labour provider.

3. For the tax year 2107/2018, if you directly engaged with and paid any
worker’s own PSC or other intermediary, please tell us:
i. the total number of such PSCs etc that you engaged directly
ii. the number of such PSCs etc that you decided were within the scope of
the legislation
iii. if different from (ii), the number of such PSCs etc that have been
subject to deduction of tax and NIC and included in an RTI submission
iv. the number of such PSCs etc that you decided were outside the scope of
the legislation
v. the names, addresses and a brief description of the worker role /
nature of services provided by the PSCs etc within (iv) above.

4. For the tax year 2017/18, if you were invoiced by any agency or other
labour provider for services via a worker’s own PSC or other intermiary,
please provide the name of each such agency or other labour provider and,
or each of them, please tell us:
i. the total number of such PSCs etc supplied by that agency / labour
provider
ii. the number of such PSCs etc that you decided were within the scope of
the legislation
iii. whether you told the agency / labour provider that the rules applied
for every PSC etc within (ii) above and if not, please explain why not)
iv. the number of such PSCs etc, that you decided were outside the scope
of the legislation
v. the name, addresses and a brief description of the worker role / nature
of services provided by the PSCs etc within iv) above.

5. Please identify any workers / PSCs etc that you decided were within the
off-payroll rules, which have subsequently been engaged / paid via
umbrella companies. Do you have any policy in place that encourages the
use of umbrella companies for those found to be within the rules?

6. For those not working through umbrella companies, have any workers that
previously worked through their own PSC etc subsequently entered into
employment contracts with your group?

7. The offpayroll rules do not apply where a public authority has fully
contracted out servicces to a third party e.g. an outsourcing company
operating under a contract where the workers do not personally provide
their services to the public authority. If you believe this applies to
you, please provide an explanation for the affected contract(s).

More information about the check

I enclose factsheet CC/FS1c ‘General information about compliance checks
into certain large and complex businesses’. Please take time to read this,
it gives you more information about this type of check. I also enclose
factsheet CC/FS22 ‘Sending us electronic records’.

If you have any questions, please contact me using the details shown at
the top of this letter.

-- Letter end --

Please can you provide:

1. Confirmation as to whether you received the letter
2. Confirmation as to whether you responded to the letter to HMRC.
3. Confirmation as to whether you provided ANY or all of the information
to HMRC.
4. A copy of your response to that letter with the following direction:
Instead of the exact answers for 3(v) and 4(v) (which are likely to be
confidential) please instead tell us the number of items on those lists.

If the FOI time limit of 3.5 hours is such that not all of these records
can be obtained in the time limit of 3.5 hours, then please provide as
much as possible until the time limit is reached. Thank you.

Yours faithfully,

Dave Chaplin

-------------------------------------------------------------------

Please use this email address for all replies to this request:
[4][FOI #545054 email]

Is [5][Oxford Health NHS Foundation Trust request email] the wrong address for Freedom of
Information requests to Oxford Health NHS Foundation Trust? If so, please
contact us using this form:
[6]https://www.whatdotheyknow.com/change_re...

Disclaimer: This message and any reply that you make will be published on
the internet. Our privacy and copyright policies:
[7]https://www.whatdotheyknow.com/help/offi...

For more detailed guidance on safely disclosing information, read the
latest advice from the ICO:
[8]https://www.whatdotheyknow.com/help/ico-...

Please note that in some cases publication of requests and responses will
be delayed.

If you find this service useful as an FOI officer, please ask your web
manager to link to us from your organisation's FOI page.

-------------------------------------------------------------------

References

Visible links
1. mailto:[email address]
3. https://www.legislation.gov.uk/ukpga/201...
4. mailto:[FOI #545054 email]
5. mailto:[Oxford Health NHS Foundation Trust request email]
6. https://www.whatdotheyknow.com/change_re...
7. https://www.whatdotheyknow.com/help/offi...
8. https://www.whatdotheyknow.com/help/ico-...

Foiarfi (RNU) Oxford Health, Oxford Health NHS Foundation Trust

2 Attachments

Please find the Trust response attached above.

 

regards.  FoIA Team

On behalf of:

IM&T Services, Oxford Health NHS Foundation Trust, The White Building,
LMHC, Sandford Road, Littlemore, Oxford, OX4 4XN
email: [1][email address]

 

From: Dave Chaplin <[FOI #545054 email]>
Sent: 15 January 2019 06:16
To: Foiarfi (RNU) Oxford Health <[email address]>
Subject: Freedom of Information request - Letter re off-payroll from HMRC

 

Dear Oxford Health NHS Foundation Trust,

The Off-payroll legislation was introduced in Chapter 10 of the Income Tax
(Earnings and Pensions) Act 2003, with the new legislation going live from
April 6th 2017. This new legislation overrode, in the public sector, the
existing Intermediaries Legislation (Chapter 8, ITEPA).

The new legislation is here:
[2]https://www.legislation.gov.uk/ukpga/201...

Around July 2018 HMRC sent your body a letter asking for information
related to “Checking compliance with the rules from April 2017”

For easy identification, a copy of the letter is as follows:

-- Letter start --

Off Payroll Reform in the Public Sector
Section 61M Chapter 10 ITEPA 22003 and Regulation 13 Social Security
(Miscellaneous Amendments No.) Regulations 2017

Following the introduction of chapter 10 ITEPA 2003 and certain amendments
to chapter 8 ITEPA 2003 (“IR35”), new rules apply in relation to
off-payroll working in the public sector from 6 April 207. Where
individuals work and are paid through their own intermediary, public
authorities as defined in the legislation) are now responsible for
deciding whether the rules apply. Where a person is assessed as being with
the new rules, the public authority agencies and third parties paying the
fee for the services of the worker must operate tax, NICs and operate the
Apprenticeship Levy.

I would like to check your compliance with the new legislation, including
any systems you have introduced to help you decide whether the offpayroll
rules should apply when engaging workers via their own intermediary
(either directly or via an agency or other labour provider). Such an
intermediary will often be a ‘personal service company’, but as the
legislation also applies where a worker is engaged via a partnership or
another person, I will use the terms ‘PSC or other intermediary’ and ‘PSC
etc’ in this letter.

I have listed the information we need below and would be grateful for your
response by 31 August 2018. If the amount of information I have requested
will make this difficult, please contact me to discuss how this can be
managed.

Checking compliance with the rules from April 2017

1. Please describe the steps you took prior to April 2017:
i. to review the off-payroll engagement of PSCs or other intermediaries,
to decide whether the off-payroll rules would apply
ii. please include an explanation of any different or additional steps
taken in relation to PSCs etc that you engaged via an agency or other
labour provider.

2. If different from 1 above, please describe the systems / processes
currently in place to decide whether the off-payroll rules apply to PSCs
etc, whether you engage them directly or via an agency or other labour
provider. Please provide a copy of any internal guidance / operating
procedures for your staff, and comment on:
i. who is responsible for carrying out the checks and approving decisions
ii. whether the Check Employment Status for Tax tool (CEST) is used to
inform decisions as to whether the rules apply, and
iii. how you ensure compliance where the PSC is engaged via an agency or
other labour provider.

3. For the tax year 2107/2018, if you directly engaged with and paid any
worker’s own PSC or other intermediary, please tell us:
i. the total number of such PSCs etc that you engaged directly
ii. the number of such PSCs etc that you decided were within the scope of
the legislation
iii. if different from (ii), the number of such PSCs etc that have been
subject to deduction of tax and NIC and included in an RTI submission
iv. the number of such PSCs etc that you decided were outside the scope of
the legislation
v. the names, addresses and a brief description of the worker role /
nature of services provided by the PSCs etc within (iv) above.

4. For the tax year 2017/18, if you were invoiced by any agency or other
labour provider for services via a worker’s own PSC or other intermiary,
please provide the name of each such agency or other labour provider and,
or each of them, please tell us:
i. the total number of such PSCs etc supplied by that agency / labour
provider
ii. the number of such PSCs etc that you decided were within the scope of
the legislation
iii. whether you told the agency / labour provider that the rules applied
for every PSC etc within (ii) above and if not, please explain why not)
iv. the number of such PSCs etc, that you decided were outside the scope
of the legislation
v. the name, addresses and a brief description of the worker role / nature
of services provided by the PSCs etc within iv) above.

5. Please identify any workers / PSCs etc that you decided were within the
off-payroll rules, which have subsequently been engaged / paid via
umbrella companies. Do you have any policy in place that encourages the
use of umbrella companies for those found to be within the rules?

6. For those not working through umbrella companies, have any workers that
previously worked through their own PSC etc subsequently entered into
employment contracts with your group?

7. The offpayroll rules do not apply where a public authority has fully
contracted out servicces to a third party e.g. an outsourcing company
operating under a contract where the workers do not personally provide
their services to the public authority. If you believe this applies to
you, please provide an explanation for the affected contract(s).

More information about the check

I enclose factsheet CC/FS1c ‘General information about compliance checks
into certain large and complex businesses’. Please take time to read this,
it gives you more information about this type of check. I also enclose
factsheet CC/FS22 ‘Sending us electronic records’.

If you have any questions, please contact me using the details shown at
the top of this letter.

-- Letter end --

Please can you provide:

1. Confirmation as to whether you received the letter
2. Confirmation as to whether you responded to the letter to HMRC.
3. Confirmation as to whether you provided ANY or all of the information
to HMRC.
4. A copy of your response to that letter with the following direction:
Instead of the exact answers for 3(v) and 4(v) (which are likely to be
confidential) please instead tell us the number of items on those lists.

If the FOI time limit of 3.5 hours is such that not all of these records
can be obtained in the time limit of 3.5 hours, then please provide as
much as possible until the time limit is reached. Thank you.

Yours faithfully,

Dave Chaplin

-------------------------------------------------------------------

Please use this email address for all replies to this request:
[3][FOI #545054 email]

Is [4][Oxford Health NHS Foundation Trust request email] the wrong address for Freedom of
Information requests to Oxford Health NHS Foundation Trust? If so, please
contact us using this form:
[5]https://www.whatdotheyknow.com/change_re...

Disclaimer: This message and any reply that you make will be published on
the internet. Our privacy and copyright policies:
[6]https://www.whatdotheyknow.com/help/offi...

For more detailed guidance on safely disclosing information, read the
latest advice from the ICO:
[7]https://www.whatdotheyknow.com/help/ico-...

Please note that in some cases publication of requests and responses will
be delayed.

If you find this service useful as an FOI officer, please ask your web
manager to link to us from your organisation's FOI page.

-------------------------------------------------------------------

References

Visible links
1. mailto:[email address]
2. https://www.legislation.gov.uk/ukpga/201...
3. mailto:[FOI #545054 email]
4. mailto:[Oxford Health NHS Foundation Trust request email]
5. https://www.whatdotheyknow.com/change_re...
6. https://www.whatdotheyknow.com/help/offi...
7. https://www.whatdotheyknow.com/help/ico-...