HMRC’s Software Developers Support Team publish guidance on reporting off-payroll workers from April 2020

18 February 2020

HMRC’s Software Developers Support Team (SDST) has circulated guidance relating to how to report on off-payroll workers, ahead of the reforms due to come into effect from 6 April 2020.

Two documents were distributed – one that related to  technical elements of reporting and paying off-payroll workers and another which listed the most frequently asked questions from developers in relation to the implementation of the new rules.

The answers to the FAQs are extremely helpful and explain what action to take in certain different scenarios. One particular area of interest centres around the procedure for setting a deemed employee up on tax code 0T W1/M1, in the event that they do not return a starter declaration form. It was initially thought that all deemed employees were set up on code BR, regardless of whether or not a starter declaration form was returned but it appears that this is only the case in circumstances where a starter declaration form has been provided. This seems logical as it is the same course of action that would be taken in the event that an employee (not a deemed employee) did not provide a starter declaration form. This guidance is reiterated in the Operating PAYE’ section of the  Employment Status Manual that was updated earlier this month.

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