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UK – Public sector body UK Research and Innovation hit with £36 million IR35 tax bill

26 May 2023

The UK Research and Innovation (UKRI), a non-departmental public body sponsored by the Department for Science, Innovation and Technology (DSIT), reported in its annual accounts an accrual of £36 million for IR35 tax relating to years 2017-18 to 2021-22.

According to Computer Weekly (paywall) and Business Matters, the agency was hit with the £36 million unpaid tax bill over IR35 contractor employment status errors.

IR35 specialist Qdos says tax bills issued to public sector bodies due to non-compliance now amount to approximately £300 million.

Seb Maley, CEO of Qdos, said, “Public sector bodies have now been hit with around £300 million worth of IR35 bills. It’s astonishing. These bodies should be leading by example, showing private sector businesses how to successfully manage the off-payroll working rules.

UKRI is a body sponsored by the Department for Science, Innovation and Technology (DSIT).