Off payroll working (IR35) for small clients ― particular NIC points

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

This note covers the NIC position for the off-payroll working for small clients rules, the legislation and situations where the NIC position differs from the tax position.

Off-payroll working for small clients ― the NIC position

Separate legislation exists for tax and NIC. In most cases, both sets of legislation produce the same outcome, so that an engagement will either be within the rules, and thus liable for both tax and NIC, or outside, and liable for neither. However, this is not always the case.

The calculation of attributable earnings for NIC follows the same steps as the tax calculation for the deemed employment payment. See the Off-payroll working (IR35) for small clients ― calculating the deemed employment payment guidance note for step by step instructions. See also Simon’s Taxes E4.1011.

National insurance categorisation rules

An individual may be self-employed under the status tests (see the Establishing employment status guidance note) and therefore outside the off-payroll working for small clients rules, but treated as an employee (called an ‘employed earner’

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more

Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

��Ƶ