Off-Payroll Tax Handbook

By: RIFT Legal Services
ISBN: 9781526512116

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About Off-Payroll Tax Handbook

This new title addresses the changes to the off-payroll working rules (IR35) coming into effect for the private sector in April 2020. Under the current IR35 regime, individuals providing a service to another person or entity through a Personal Services Company (PSC), have the responsibility of determining whether the IR35 regime applies, and if so, to account for income tax and national insurance contributions through the PAYE system on a... Read more

About Off-Payroll Tax Handbook

This new title addresses the changes to the off-payroll working rules (IR35) coming into effect for the private sector in April 2020. Under the current IR35 regime, individuals providing a service to another person or entity through a Personal Services Company (PSC), have the responsibility of determining whether the IR35 regime applies, and if so, to account for income tax and national insurance contributions through the PAYE system on a deemed payment of employment income.

Under the new rules, which will broadly mirror the reforms introduced in the public sector in 2017, organisations (i.e. the end-user of the service) have to take on the responsibility of determining the employment status of contractors. A consultation document was issued in March 2019 and the new rules are expected to be introduced in April 2020. It is proposed that the new revised legislation will apply to all but those companies defined small under the Companies Act 2006. Decisions on employment status must be pass to the contractor and it is expected that contractors will given some sort of mechanism to appeal these decisions.

This important new title, authored by RIFT Legal Services, provides practitioners with guidance on the implementation of the new legislation (tax and legal implications) using clearly laid out examples, flow charts and case studies to illustrate how the rules will apply.

The process by which information passed between parties is addressed, as process of transferring debt liability. A separate section outlines how the enquiries process works. There is also a separate section explaining the rules introduced for the public sector in 2017.

Thousands of businesses employ contractors throughout the year and they will be reviewing these relationships ahead of the introduction of this revised legislation. This title will be a timely and useful resource for practitioners advising their clients on how to ensure they are well prepared for the new regime.

Table of Contents

PART ONE: INTRODUCTION AND WORKER STATUS

1. Outline and recent developments

Background (historical context)
The rise of personal service companies etc.
Recent developments (IR35 cases, public sector, private sector)

2. Employment status

Background (the Ready Mixed Concrete case)
The status tests
Key cases
Further guidance (HMRC manuals, ESI tool, etc.)

3. Agency workers

Background
The agency provisions
Practical issues

4. Umbrella companies

Introduction (what is an umbrella company?)
Practical uses
Tax and NIC implications

PART TWO: PERSONAL SERVICE COMPANIES (IR35) AND MANAGED SERVICE COMPANIES

5. IR35: Personal service companies

Background and scope
Outline of the legislation
Key case law (outline)

6. How do the IR35 rules work?

Scope (intermediary companies, partnerships, individuals)
Are the services ‘caught’? (the hypothetical contract)
Factors to consider (including case law)

7. IR35: Practical issues

Calculation and accounting for the deemed payment
Handling IR35 enquiries
IR35 contract reviews

8. Managed service companies

Background (reason for introduction)
How do the MSC rules work?
Practical issues (including MCS disputes and enquiries)

PART THREE: INTERMEDIARIES AND THE PRIVATE SECTOR

9. The public sector rules: Outline

Background and scope
What is a ‘public authority’?
Outline of the legislation

10. How do the public sector rules work?

Engagements within scope
Is the engagement ‘caught’? (statutory conditions, information requirements, etc.)
Calculation of deemed direct payment

11. The public sector rules: Practical issues

Workers and supply chains
Compliance issues (returns, payments, etc.)
Preventing disputes (steps to consider)

PART FOUR: INTERMEDIARIES AND THE PRIVATE SECTOR

12. The private sector rules: Outline

Background and scope
What is a ‘small’ client?
Outline of the legislation

13. How do the private sector rules work?

Engagements within scope
Is the engagement ‘caught’? (statutory conditions, information requirements, etc.)
Calculation of deemed direct payment

14. The private sector rules: Practical issues

Workers and supply chains
Compliance issues (returns, payments, etc.)
Preventing disputes (steps to consider)

Publishing Details

Publication Date: 28 May 2020
ISBN: 9781526512116
Binding: Paperback
Edition: 1
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