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

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

Personal Tax

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more

Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more

UU��ֱ��