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’

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more

Tax Returns

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more

Corporation Tax

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more

UU��ֱ��