Projected Reduction in Corporation Tax due to Offpayroll Regulations

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Dear HM Revenue and Customs,

We hear regularly that HMRC estimates that Offpayroll will collect additional tax (particularly in the form of NI and employment taxes). However, we have not seen any mention of the projected reduction in other taxes as a result of this legislation.

That is, a contractor currently working through a Limited company will be paying Corporation Tax (and others), and will cease to do so if they switch to working via and Umbrella company. Depending on their circumstances, they may end subsequent years with a loss, and so may be able to obtain a repayment of previous Corporation Tax paid. This all constitutes a reduction in Corporation Tax to HMRC.

Please can you detail any and all projections made by HMRC at any time, for any time period that describe the estimated reduction in Corporation Tax expected as a result of Offpayroll legislation in either the public or private sectors.

For the avoidance of doubt, this request is for predictions, projections and estimates made at any time for the future. FOI2021/05068 asks for actual changes, measured either now or in the past.

Yours faithfully,

Ralph Bolton

FOI Team, HM Revenue and Customs

Our ref: FOI2021/05747

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Dear Mr Bolton,

We are writing in response to your request for information, received 25

Yours sincerely,

HMRC Freedom of Information Team