Off payroll.

HMRC’s final guidance on off-payroll work. If you are a medium-sized or large business that pays workers off the payroll or you are an off-payroll worker that provides services to one via an intermediary, e.g. a company, then the new regime applies from 1 April 2021.

A corporate entity will be medium or large-sized if it meets at least two of the following criteria for two consecutive financial years:

• turnover of more than £10.2 million
• a balance sheet total (assets) of more than £5.1 million
• an average of more than 50 employees

This shifts the onus for accounting for PAYE tax and NI from the recipient to the payer.

The new system comes with lots of rules and practices which have frequently been amended over the last couple of years.

To help businesses affected, HMRC has provided the following to help:

• Webinars
• An online tool to check employment status
• Various online guides

Please see the following link:

https://www.gov.uk/guidance/help-and-support-for-off-payroll-working

I hope the above is helpful as a general guide for some of the points to be considered and it is important that you obtain tax advice.

Further Reading:

Tax Planning Time