Ministry of Justice faces £72m IR35 tax bill

In the ongoing saga over IR35 in the public sector, two more government departments are facing multimillion pound tax bills for non-compliance

The latest annual reports for the Ministry of Justice (MoJ) and the Department for Environment, Food and Rural Affairs (Defra) show that both departments owe millions of pounds in penalties for failures to comply with the off-payroll regulations and making mistakes when determining the status of their contractors despite following HMRC's guidance and using HMRC's Check Employment Status for Tax (CEST) tool.

A change in legislation from April 2017 placed the responsibility for the assessment of employment status of off-payroll workers on public sector employers.

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