In previous newsletters we mentioned that HMRC had issued a consultation on offshore employment schemes with a view to bringing in legislation, effective from the new tax year, to close down such offshore schemes. The consultation closed in August but the results are not yet published. In the meantime there has already been a move by recruiters to ensure that their contractors are not using offshore schemes. This is largely driven by end clients who are concerned that they may be chased for any unpaid tax by HMRC.
Quite a few of our contractors have been asked to prove that they are not paid offshore, particularly those working in the public sector. This is easy to do if you have payslips (which are available on the portal if you misplaced them). We can also write a letter to the client confirming this, if the need arises. If you do have any concerns we ask that you email our customer care team at firstname.lastname@example.org.