Off-payroll working rules best practice

The rules for individuals providing services to certain private sector organisations via an intermediary such as a personal service company (PSC) changed from 6 April 2021. The new rules mean that medium and large-sized clients are now responsible for deciding whether the intermediaries’ legislation applies to their workers. This includes charities and third sector organisations. The changes mainly apply to businesses with an annual turnover of more than £10.2 million.

HMRC has laid out some helpful best practice points to be aware of in complying with the rules:

  • consider how the changes affect your organisation
  • upskill those responsible for making decisions
  • review current workforce
  • talk to your contractors
  • operate PAYE where appropriate
  • use the RTI flag
  • have a clear process in place for disagreements
  • maintain an audit trail – this is a legal requirement
  • utilise the resources and guidance available to you including HMRC’s off-payroll working guidance.

This is also relevant to agencies of any size who supply contractors that may be affected by these rules.

Source: HM Revenue & Customs Tue, 29 Jun 2021 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a