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Off-payroll working – a user guide

From April 2021 medium and large private sector businesses who engage contractors will need to consider whether the off-payrolling rules apply. If they apply, the business will be responsible for determining the tax status of the contractor and, in some cases, will need to treat the contractor as a deemed employee therefore paying them though the payroll. This practical guide explains the off-payrolling rules as they apply to medium and large businesses. It sets out the operational impacts on finance and payroll departments and how to overcome some of the practical issues of implementation.

Off payroll working - a user guide

Business and Management Faculty and Tax Faculty members can download this guidance in full.

Download the guide

Contents overview

This guide covers:

  • How to determine if the rules apply
  • Preparing for 2021 commencement
  • Establishing employment status for tax purposes
  • How to provide a Status Determination Statement
  • Handling appeals
  • The payroll process
  • How to record the purchase invoice
  • Payment of the amounts due to the personal service company
  • VAT issues

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