Request Received: 21 April 2023
Dear UK Research and Innovation,
In your annual accounts and reports for 2021-22: Annual Report and Accounts 2021-22 (ukri.org)
On page 124, it states in relation to IR35, that "Social Security costs increased year-on-year; following a review of the IR35 status of Monitoring & Assessment Officers engaged by Innovate UK, UKRI has concluded that some of these Monitoring & Assessment officers should have been considered to be inside the scope of IR35 regulations, and thus subject to Income tax and national insurance contributions. UKRI has estimated a liability related to these income tax and national insurance contributions for the period to 2018-19 to 2021-22 which is included in Social Security costs. It is expected that this liability will be settled in 2022-23."
[1] Please can you tell me the figure for the "estimated liability" for the IR35 / Off-payroll provision. Thank you.
[2] Please can you also state how many contractors you engage with that are sole traders, as "Monitoring & Assessment Officers".
[3] For the individuals in #2, please can you indicate how many of those UKRI believes they may have misclassified, and the tax provision set aside for them.
[4] For the individuals in #3, that have been misclassified, please indicate the level of provision set aside for any potential claims for "worker" status, that may result in payouts for holiday pay and other benefits.