Off-payroll working rules – what do we mean by a ‘managed service’

Nicola Pitcher looks at the off-payroll working rules and considers what is meant by a managed (contracted-out) service.

The reforms to the off-payroll working rules (IR35) were initially rolled out to the public sector in 2017 with the intention of allowing allow government bodies time to put their own house in order and for HMRC to learn lessons before extending change to the private sector.  In April 2021, after some further amendments to the rules and a one-year deferral due to the Covid-19 pandemic, the government eventually extended the new off-payroll regime to medium and large organisations in the private sector.

NAO report and non-compliance in the public sector