UK: Off-payroll working (IR35) and other employment status considerations
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 2021 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.
Who is this course for?
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 will you achieve?
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
Before joining the CIPP as a full-time trainer in September 2019, Fiona worked in payroll in different organisations for over 9 years including her role as Assistant Group Payroll Manager for Breedon Group Services, the UK’s largest independent construction materials firm. Fiona holds the CIPP Foundation Degree in Payroll Management and the CIPD Diploma in HR Management and uses the knowledge gained in both of these within her training role to ensure that CIPP members have the information, skills and knowledge they need to keep up to date with the ever-changing payroll obligations.
- Define the current NMW & NLW rates.
- Defining the correct NMW category for individuals.
- Summarising the Voluntary Living Wage and outlining the differences between this and NMW/NLW.
- Explaining how to conduct an annual review of NMW & NLW rates.
- 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
- Distinguishing workers who should be on the payroll vs those off the payroll
- Summarising the key features of agency worker contracts
- Recognising Personal Service Companies & Managed Service Companies
- Identifying workers engaged under umbrella contracts
- 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 features of and relevant case law on the “gig economy”
- Outlining potential future changes from the Good Work Plan
What will be covered?
Explaining the importance of employment status:
Outlining the factors determining employment status:
Classifying different categories of workers:
Distinguishing different types of employment intermediaries:
Explaining the off-payroll working rules for employment intermediaries:
Summarising the recent changes to modern employment practices:
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.