Education tools: Off-payroll working
06 November 2020
HMRC has published a useful guide to the various help resources it offers on the topic of off-payroll working, ahead of the changes coming into effect from 6 April 2021.
The main guidance available is as follows:
- Off-payroll working (IR35): detailed information
- Check Employment Status for Tax (CEST) tool – this can be used to establish whether a worker on a specific engagement should be classed as employed or self-employed for the purposes of tax
- Employment Status Manual – this provides detailed guidance and explanations of how the rules should be applied
The help available is tailored dependent on whether someone is a client or fee-payer, a contractor or a tax agent.
Clients and fee-payers
HMRC recommends webinars, workshops and tailored educational calls for clients and fee-payers.
Between October 2020 and April 2021, HMRC is offering a variety of off-payroll webinars, which will provide an overview of the reforms and additional information in certain topic areas.
Clients or fee-payers who may need a more general overview of the rules are encouraged to register for the following two webinars:
- Overview of the off-payroll working rules
- Making the determination, disagreements and record keeping – this discusses the requirements in making a determination and what constitutes a disagreement
More webinars will be published on specific subjects that clients and fee-payers may require more detailed information about. Some of the more detailed webinars available cover:
- International issues – how off-payroll working interacts with both international and overseas issues
- Engagements where the rules apply – the duties of each entity within the contractual chain, and what engagements should be considered. This includes contracted out servicers
- Fee-payer responsibilities – practical considerations of operating PAYE, and deemed employment payment calculations
HMRC is also offering workshops for small groups, which will be delivered on a virtual basis. They will provide an in-depth overview of what the changes mean and will be tailored to suit the needs of certain sectors.
Workshops will begin in November 2020, and HMRC is working with stakeholders to ensure it identifies the right individuals to invite. Invitations will be issued via trade and representative bodies.
Workshops will be sector specific and will also look at the duties of recruiters and agencies when they are dealing with both contractors and clients.
HMRC will be directly contacting individuals with the greatest support needs to invite them to take part in educational calls.
The same webinars will also be of use to contractors and will be delivered throughout the rest of 2020 and up to April 2021.
Tax agents can make use of the communication resources on Gov.UK, along with webinars and workshops. The communication resources can be used to discuss the changes with members, clients and customers, and may be particularly useful when liaising with contractors.
Workshops for tax agents will include a focus on the accounting treatment and record keeping for tax agents who must deal with contractor’s intermediaries.
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