Sarah Bradford explains how the updated ‘check employment status for tax’ tool can be used to make status determinations for the purpose of the extended off-payroll working rules.
Under the off-payroll working rules, as extended from 6 April 2020, medium and large private sector companies that employ workers who provide their services through an intermediary, for example a personal service company, will be required to carry out a status determination. The point of the determination is to ascertain whether the off-payroll working rules apply. This will be the case where the worker would be an employee of the end client if the worker supplied his or her services directly rather than through the intermediary.
Where the rules apply, the fee payer which may be the end client or possibly a third party, such as an agency, must deduct tax and National Insurance
