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Implement robust processes: Establish clear processes for issuing SDSs, handling disputes, and ensuring compliance throughout the supply chain. Make sure supplier due diligence covers the risks and potential liabilities. Engage with workers and agencies: Communicate openly with workers and agencies/ labour suppliers about the off- payroll working rules and their implications. Ensure that all parties understand their responsibilities. Stay updated: Keep abreast of any changes in legislation, case law or HMRC guidance. Regularly review and update internal policies and procedures to reflect the latest requirements. Conclusion The off-payroll working rules are a critical component of the UK’s tax system, designed to ensure fairness and compliance. By understanding the various provisions of the legislation, and following HMRC guidance and best practice, engagers can navigate these rules effectively. Ensuring compliance not only mitigates the risk of underpayments of tax/ NI, interest and penalties but also fosters a transparent and fair working environment for all parties involved.
reasonable care. The key is answering the questions truthfully and correctly and referring to the guidance on the completion of each question. Record-keeping: Engagers and labour suppliers must maintain detailed records of status determinations, contracts, and communications to support their compliance efforts. Training and awareness: Engagers and labour suppliers should ensure that relevant staff are trained and aware of the various off-payroll working rules and their responsibilities. Best practice for engagers To ensure compliance with the off- payroll working rules, engagers/end users of labour should adopt the following best practices: Conduct thorough assessments: Regularly review the employment status of all off-payroll workers. Use the CEST tool or a similar method to assess the status of workers and seek professional advice if necessary. Maintain clear documentation: Keep detailed records of status determinations, contracts, and communications. This documentation can be crucial in the event of an HMRC enquiry.
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GLOBAL PAYROLL MAGAZINE ISSUE 8
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