New tax and national insurance (NIC) rules for Offshore Employment Intermediaries came into force on the 6th April 2014. HMRC has published guidance about the changes. Changes have also been made to the NIC rules for entertainers.

At Budget 2013 the Government launched a consultation on changing the rules on Offshore Employment Intermediaries in order to deter PAYE and NIC avoidance schemes.

The legislation is in response to HMRC’s investigation of a number of attempted avoidance schemes involving offshore intermediaries mainly aimed at avoiding secondary (employer) Class 1 NIC. Although HMRC considers that most if not all of the schemes are flawed, and it continues to challenge them, enquires can be complex. The legislation is thus designed to make enforcement easier and simpler.

More information is available at http://www.hmrc. gov.uk/news/news240314.htm