There are new rules coming into force in April 2021 which affect public and private sector organisations.
The off-payroll working rules are part of HMRC’s intermediaries legislation (IR35). IR35 came into force 20 years ago, but it has been ineffective in tackling “bogus” self-employed arrangements, in place purely to minimise the amount of PAYE contributions from the organisation and the individual.
From April 2021, both public and private sector organisations that engage contractors via intermediaries will need to carefully assess whether, but for the existence of the intermediary, the contractor would have deemed employment status with the organisation. More stringent requirements regarding the scope and format of the assessment will come into force for the public sector, who have to some extent been required to comply with the off-payroll working rules since April 2017.
If the individual has deemed employment status, the organisation must 1) confirm that fact to the intermediary/individual by preparing a “status determination statement” and 2) make PAYE deductions from the amount it pays to the intermediary. HMRC has developed a tool (CEST) to assist organisations making the assessment.
The rules and processes seem complex. There are reports of organisations who have stopped using contractors engaged via intermediaries all together, for fear of falling foul of the rules. This module seeks to cut through the noise, and explain clearly what you need to do next.
- background to IR35/off payroll working, “bogus” contractors
- HMRC tests versus wider employment law tests (control, personal service, mutuality of obligation)
- using CEST
- preparing and sharing the SDS
- implications of deemed employment status for tax purposes
half a day
webinar or face-to-face lecture-style
At the end of the module, participants should feel confident about when the new rules do and do not apply, and what steps they need to take if the rules do apply. You’ll also gain a broader understanding regarding employment/worker status issues, which will allow them to plan their workforces effectively and in a way which minimises legal/tax risk.
course notes, accompanying infographic
Capital Academy’s employment modules are specifically designed with time-poor senior and HR managers in mind. The training is fast-paced and designed to build on existing knowledge. Module resources such as factsheets and infographics are supplied to help you to find answers quickly when time is of the essence. All our employment law training is delivered by qualified solicitors who will remain available to you after the delivery of the training, as a friendly face that knows your business, and who can deal with any follow up queries.