Off-Payroll Working - HMRC Guidance

HMRC have published guidance on "How to comply with the reformed off-payroll working rules (IR35), and avoid common mistakes."

HMRC explain that:

"These?Guidelines for Compliance?(GfC) are for organisations who engage workers under the off-payroll working rules. The rules are sometimes known as ‘IR35’.

These guidelines are designed to demonstrate what good practice with the off-payroll working rules looks like.

You should read these guidelines alongside?existing off-payroll working guidance. They are not designed to be used in isolation, or to create an end-to-end process for organisations to comply with the rules.

Your organisation should apply the guidelines to reflect the complexity and scale of your own off-payroll working engagements. Use these guidelines to help make informed decisions, based on individual circumstances."

The guidance covers the following topics:

• Purpose, scope and background (part 1)
• Training your staff (part 2)
• Record keeping (part 3)
• Considering the requirements of a new role (part 4)
• Considering your off-payroll working population (part 5)
• What to do if off-payroll workers are missed (part 6)
• Contracted out services (part 7)
• Making status determinations (part 8)
• Status determination statements (part 9)
• Client-led disagreement process (part 10)
• Operating PAYE (part 11)
• Outsourcing off-payroll working responsibilities (part 12)
• Internal audit process — periodic reviews (part 13)
• Next steps — correcting errors, guidance and legislation (part 14)
• Glossary of terms

Given HMRC focus on this area, any organisation who is within the off-payroll legislation and engages workers through relevant intermediaries should review the guidance and their processes to ensure that they can demonstrate that they are compliant to HMRC satisfaction.