UKRI hit with £36m IR35 bill, taking non-compliance in public sector to £300m

By Investor Empires On May 25, 2023

The UK Fund for Research and Innovation (UKRI) outside administrations must pay £36 million to HMRC in deferred tax.

As stated in PC WeeklyUK Research and Innovation (UKRI), revealed on its website Annual accounts For 2021/21, HMRC has deemed that it has misclassified contractors’ IR35 status and, as a result, owes £36m in tax.

UKRI is a body sponsored by the Department of Science, Innovation and Technology (DSIT). It is the latest public sector body to mismanage non-salary work rules.

Tax bills issued to public sector bodies for non-compliance are now around £300m.

IR35 specialist Holy Seb Malli, Chief Executive, commented: “Public sector bodies have now been hit with around £300m of IR35 bills. It’s amazing. These bodies should lead by example, showing private sector companies how to successfully manage non-salary work rules.” .

“I’m not sure what’s more troubling — the sheer size of this bill or the fact that it’s something we expect in the public sector. And I can’t help but wonder who’s next.

It’s hard not to see the irony in this. As a body that champions innovation, dealing with rules for working outside the payroll shouldn’t be an issue for UKRI in theory.

“They are wooden dollars in the public sector, but if a private sector company is hit with a £36m bill, it could be blinds. With that in mind, private sector companies must prioritize their compliance.”