IR35 - Off-payroll working from 6 April 2021
by Martin Jackson
1. End client obligations & considerations (for medium/large private sector and public sector end clients)
1.1. Employment status decision
1.2. Status Determination Statement (SDS)
1.2.1. Worker
1.2.2. Fee-payer
1.3. Disagreement process
1.4. If fee payer - Deemed payment calculation
1.4.1. Payroll the worker (PAYE/NICs)
2. PSC obligations & considerations (for small private sector end clients only)
2.1. Employment status decision
2.2. Deemed payment calculation
2.2.1. PAYE/NICs on deemed payment
2.3. Extract net from PSC (as either salary or dividend)
3. Employment Agency obligations & considerations
3.1. Worker directly contacts?
3.1.1. Supervision, Direction or Control?
3.1.2. Payroll the worker (PAYE/NICs)
3.1.3. Agency Regulations
3.2. Notify end client employment status decision needed
3.3. Fee-payer - SDS received - payroll the worker (PAYE/NICs)
3.3.1. Deemed payment calculation
3.3.2. Make net payment to PSC
3.4. Not fee-payer - SDS received - pass SDS down the chain
3.4.1. Offshore entities in the chain?
4. PSC obligations & considerations (medium/large private sector and public sector clients)
4.1. Notify agency/end client that employment status decision needed
4.2. Disagreement process
4.3. Gross reciepts excluded from Corporation Tax
4.4. Extract net from PSC (tax-free as either salary or dividend)
4.5. Owner/director to report employment income via Self Asessment
5. Client type
5.1. Large and medium private sector end clients
5.2. Public sector end clients
5.2.1. Definition of 'public authority'
5.3. Small private sector end clients
5.3.1. Definition of 'small'
5.3.1.1. Small company
5.3.1.2. Small LLP or overseas company ('Relevant undertaking')
5.3.1.3. Small partnership ('Other undertaking')
5.3.1.4. Small sole trader ('Other person')
5.4. Employment Agency
5.4.1. Agency Regulations
5.5. Umbrella company
5.6. Managed Service Company (MSC)
6. Umbrella company obligations
6.1. Worker directly contracts?
6.1.1. Payroll the worker (PAYE/NICs)
6.2. Worker via PSC?
6.2.1. Umbrella company treated as an Employment Agency