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 the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Tax Returns

Trusts and Inheritance Tax

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more

Autumn Budget 2024

Personal Tax

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more

��Ƶ