Preparing for the taxation of contractors and consultants through the payroll in the UK

Preparing for the taxation of contractors and consultants through the payroll in the UK

  • Country

    United Kingdom

  • learning hour's

    3

  • Material Year

    2020

Overview

For many decades the UK has been wrestling with the issue of employment status and trying to ensure that operating on a self-employed basis is not something that is entered into simply to avoid the payment of tax and social security. In April 2017 new legislation was implemented for public sector bodies in the UK that required them to deduct tax and social security from a contractor’s invoice if the terms and conditions of their engagement pointed to a contract of employment, if it was not for the existence of an intermediary such as a limited company structure that the consultant was operating within. This legislation is known as IR35 after the number of the press release from 1999 when this legislation was first due to take effect. The legislation was due to be implemented for most private sector employees in April 2020, but was delayed due to COVID-19 until April 2021. It is a very  significant change to the employment status rules and therefore to the costs and responsibilities of any medium or large private sector employer who uses contingent labour.

The course is delivered over two days from 3.30pm to 5.00pm GMT in order to accommodate worldwide time zones. A pack of slides are provided to all delegates

Who is this course for?

It is aimed at those who are looking to start running a payroll in the UK for their organisation, or those who are utilising the services of a service provider who want a better understanding of the setup requirements so they are better able to support their business and ensure compliance in their organisation.

What will you achieve?

Sufficient knowledge to be able to assess the impact of the IR35 rollout for any UK subsidiaries including whether additional technical expertise will need to be brought in to advise.

Course Trainers

  • Kate

    Payroll Lecturer

    Kate, AMBCS, mGPA, is a regular conference speaker, lecturer and writer on legislative issues, including tax and National Insurance, benefits and the whole range of employer compliance responsibilities. She undertakes consultancy work with employers and payroll agents assisting them with topics such as payroll health checks, national minimum wage and auto-enrolment, systems selection and departmental re-engineering. She is the vice chair of the ICAEW Employment Taxes and NI committee and Chair of the pan-professional Reward and Employment Engagement Forum. Prior to setting up her own company in 2005, she was the Payroll Legislation Manager at M&S, for whom she worked for 20 years, eleven of them in payroll. 

What will be covered?

Course Overview 

  • Definitions, the contractor landscape and the rationale for change
  • What have we learned from the public sector rollout?
  • An introduction to employment status
  • How to carry out a contract review and a status assessment
  • Using the check employment status for tax tool, issuing a determination statement and the appeal process
  • The operational impact for payroll and finance
  • Preparing an IR35 action plan
Summary

Even though the course is delivered online there is the opportunity to ask the presenter any technical questions or request additional support throughout.

Post-course support can also be offered with the fee subject to negotiation depending upon whether this is one-off, or the delegate would prefer a retainer service which we offer to clients based on an hourly rate.

Complementary courses 

The Global Payroll Association also offers the following courses for employers with employees based in the UK:

  • An overview of UK payroll (three x 2 hour sessions over three days)
  • An overview of UK benefits and expenses taxation (three x 2 hour sessions over three days)
  • A UK payroll compliance update - covering recent and future legislative developments (two x 1 ½ hour sessions over two days)