Payroll - Off-payroll Workers (IR35)

From 6 April 2021 (delayed from 6 April 2020 due to Covid-19 pandemic) a worker (contractor) subject to off-payroll working rules must be taxed as if they were a normal employee with income tax and national insurance deducted from fees and paid over to HMRC as part of the normal PAYE cycle.

Some additional information on the topic is available from the HMRC web site via this link Off-payroll working (IR35)

As this is a complex and potentially fraught area from a tax perspective users are strongly urged to seek appropriate advice from a professional advisor.

Dealing with an Off-payroll worker

If the rules apply to an individual for which the organisation is the client then set them up as an employee in the normal way ensuring that on the employee payroll detail, HMRC Supplemental Info tab the "Off Payroll Worker(No student loan deductions or statutory pay)" box is ticked.

Set up payroll runs and complete in the normal way.

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