Changes from 6 April 2021
From 6 April 2021, the ‘Off-payroll worker subject to the rules’ indicator must also be used by deemed employers of contracts that are inside the off-payroll working rules where services are being provided to a medium or large sized organisation outside the public sector.
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Education and support: off-payroll working changes 20 October 2020
HMRC has published a factsheet that signposts anybody impacted by the upcoming changes to the off-payroll working rules to the raft of information and guidance that is available online, to help them to prepare prior to April 2021.
The amendments were due to come into effect from April 2020, but in recognition of the turbulence created by coronavirus, they were delayed until the following year. The changes have been made to ensure that individuals, frequently referred to as contractors, who work like employees, but through their own company or other type of intermediary, pay the same income tax and National Insurance (NI) contributions as people who are directly employed.
The rules will affect:
• Medium or large-sized non-public sector organisations, that engage contractors working through their own intermediary • An employment agency which supplies contractors who work through their own intermediary • A public authority – there are additional changes coming from April 2021 • A contractor who provides services through their own limited company or other intermediary The factsheet includes a table of all the different sources of information regarding the upcoming off-payroll working reforms. It confirms who the guidance is most relevant to, whether that be clients and fee-payers, tax agents or contractors, or, indeed, whether it is aimed at assisting all three.
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Employment Status Manual - Guide to determining status: fact finding/evidence gathering updated 5 November 2020
The employment status manual has updated guidance on determining employment status.
With off-payroll lurking just around the corner, the Employment Status Manual has been updated to include sets of questions that can be asked at interview to establish the status of a worker.
The guidance is specifically clear that the notes within the manual are not to be given to either the engager, worker, or adviser as a questionnaire, but are to be asked at interview stage. They are not an exhaustive list of issues to be considered in every case, and not all of the issues will apply in every case with some cases calling for further or different lines of questioning. They are intended as a foundation of ideas only and should therefore be used flexibly and carefully. Some of the issues are not self-contained and will be evidence for more than one status pointer. The ideal option is to ask broad open questions which themselves will lead to the answers on some of the issues listed with in the guide. Facts should normally be obtained from both the person delivering the work (referred to as the ‘engager’) and the worker. You should not ask the engager or worker questions about each other that they cannot be expected to know. The in-depth guidance is very much welcomed by anyone wanting to find the employment status of a worker, especially as the previously delayed changes to the off payroll working rules will be implemented in April 2021.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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