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Off-payroll working

The extension of the off-payroll working rules to medium-sized and large organisations finally took effect on 6 April:
 
The responsibility for making an employment status decision for each engagement where the worker's services are provided through an agent now rests with the ‘client receiving the services’, i.e. the engager/hirer.
 
The rules now apply to all public sector clients and, from 6 April, private sector companies that meet 2 or more of the following conditions:
 
the annual turnover of more than £10.2 million;
the company has a balance sheet total of more than £5.1 million;
the company has more than 50 employees
 
There is a simplified turnover test for non-company entities - the rules apply if the annual turnover exceeds £10.2 million. The tests reference the financial period ending in the previous tax year, e.g. for a company with a year end of 31 March, it will be the period ending 31 March 2021 that determines the company's size for 2021-22.
 
Upon reviewing an engagement, the client must issue a Status Determination Statement to the worker (as well as the agency, or other person the contract is with) informing them of the decision as well as the reasoning for it. The worker may disagree, in which case the client must review the decision and respond within 45 days, informing them whether the original determination has changed or not. The rules are complex, and reference should be made to the published guidance.
 
Note: that small businesses are unaffected and do not have to assess their workers' employment status, though they will need to monitor their size regularly if they are growing. Once they meet the criteria for a medium-sized organisation, they will need to comply with the rules from the start of the tax year following the end of the calendar year when they met the conditions.
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Added By: Sharon Worger on 13th May 2021 - 16:58
Last Updated: 13th May 2021 - 17:01

Number of Views: 47
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