Off payroll working in the public sector update
The off payroll working in the public sector measures became effective on 6 April 2017. These were originally intended to apply to all public authorities, as defined by the Freedom of Information Act 2000 and Freedom of Information (Scotland) Act 2002. This definition covers government departments, companies owned or controlled by the public sector, universities, local authorities, parish councils and the NHS.
Private sector retailers such as high street pharmacies and opticians had to consider whether the rules applied to workers providing services through an intermediary, because they provide services on behalf of the NHS. However, this was not the intention of the policy and amendments to the income tax and social security legislation have been made to take retail businesses out of the scope of the new measures. The changes apply retrospectively and are effective from 6 April 2017.
The definition of public sector continues to include GP surgeries and dental practices providing NHS services.