This course explains how to assess employment status, the financial risk of getting it wrong, and a variety of modern employment practices. It covers the ‘off-payroll working’ (IR35) reforms that were first introduced in the public sector and will be revised and extended to other sectors in April 2020. It also outlines possible future developments following various Government consultations

Please note: Materials for this course will be made available via an online platform, however a selection of these materials will need to be printed off and brought with you on the day. Login details for the online platform will be sent to you 10 days before the course start date. If you have any problems or questions, please email admin@cipp.org.uk.

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Why you should attend

Getting the employment status right for all workers engaged by an organisation is crucial to avoid substantial financial penalties and the transfer of responsibility for this decision from employment intermediaries to the organisations engaging workers in this way means many more organisations will have to weigh up the various factors involved.

Future developments, such as the extension of off-payroll working rules to the private and voluntary sectors in 2020 and the potential implications of numerous status case law judgements have made this subject ever more complicated.

On this half-day session, the factors and case law currently influencing employment status will be explored in detail, combined with an explanation on how to use HMRC’s employment status tool for tax purposes. The different types of employment intermediaries will be covered, with a thorough explanation of the off-payroll working reforms as implemented and the imminent changes.

Delegates will leave this course equipped with the knowledge required to assess the correct status of their workforce for tax purposes, including, where relevant, workers supplied by intermediaries.

This course is aimed at payroll managers, HR managers, or other individuals who need an understanding of employment status issues for traditional and modern employment practices.

What you will learn

To inform delegates of the issues, risks and responsibilities for employers surrounding the inter-linked subjects of employment status, employment intermediaries and modern employment practices.

  • Identify why correct employment status is important
  • Distinguish between employed and self-employed status for tax purposes
  • Identify the correct employment status of individuals
  • Comply with the reporting duties for employment intermediaries where applicable
  • Comply with the pre-employment checks for the right to work in the UK
  • Identify how and when the off-payroll working reforms apply to an engagement
  • Identify payroll implications for fee-payers under the off-payroll working reforms

Course content

  • Explaining the importance of employment status
    • Listing employee rights & entitlements
    • Summarising the income tax & NIC implications from employment status classifications
    • Outlining HMRC’s approach to undertaking employment status compliance activities
  • Outlining the factors determining employment status
    • Establishing the factors determining employment status
    • Demonstrating the correct practice for determining status; analysing the balance of probabilities
    • Using HMRC's Check Employment Status for Tax (CEST) Tool effectively    
  • Classifying different categories of workers
    • Distinguishing workers who should be on the payroll vs those off the payroll
    • Summarising the key features of agency worker contracts
  • Distinguishing different types of employment intermediaries
    • Recognising Personal Service Companies & Managed Service Companies
    • Identifying workers engaged under umbrella contracts
  • Explaining the off-payroll working rules for employment intermediaries
    • Explaining the off-payroll working rule
    • Identifying engagements where the off-payroll working rules
    • Summarising the key features of administering off-payroll rules
    • Handling the Status Determination Statement
    • Processing a deemed payment and other implications for payroll
  • Summarising the recent changes to modern employment practices
    • Summarising the features of and relevant case law on the “gig economy”
    • Outlining potential future changes from the Good Work Plan

 

Prior learning required

None essential.

However, delegates should have an awareness of the statutory deductions due from employment income and the rights and entitlements due to employees, such as the provision of annual leave.

Continuing your learning

Creating a Payroll Procedures Manual:
Ascertaining correct employment status is just one of the broad array of tasks and obligations that Payroll Supervisors and Managers have to incorporate into their procedural documentation. This course covers the theory and practicalities that need to be considered when designing a procedures document that all payroll departments need to ensure all statutory and contractual obligations are managed efficiently and professionally.

Booking information

For more information please email admin@cipp.org.uk or call us on 0121 712 1063. 

Closing date for bookings is two weeks prior to the course date.