HMRC have published new guidance on the off-payroll working rules, particularly around status determinations for off-payroll workers. This is the latest in HMRC’s series of ‘Guidelines for Compliance’.
As might be expected, the guidance includes detailed sections on making status determinations (Part 8) and status determination statements (Part 9), including a reminder that HMRC ‘will stand behind the determinations’ made using its own check employment status for tax (CEST) tool (whereas organisations use other third party tools at their own risk). HMRC says that this guidance should be read alongside existing off-payroll working guidance.
HMRC have also issued new guidelines for employment businesses which work with umbrella companies, with a focus on how those businesses should protect themselves and the workers they supply from ‘non-compliant’ businesses in their supply chains – mainly by ensuring they conduct the necessary due diligence and avoid over-complicated supply chain structures.
More generally, HMRC say that its Guidelines for Compliance (GfC) ‘offer HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes, including guidelines for employers, Corporation Tax and VAT’ and include best practice examples to ‘offer insights into the practical application of the law and HMRC’s administrative approaches, expanding the scope of HMRC material, beyond interpretation of the law’. To date, HMRC have published GfC on the following:
determining whether work qualifies as research and development for tax purposes;
HMRC have published new guidance on the off-payroll working rules, particularly around status determinations for off-payroll workers. This is the latest in HMRC’s series of ‘Guidelines for Compliance’.
As might be expected, the guidance includes detailed sections on making status determinations (Part 8) and status determination statements (Part 9), including a reminder that HMRC ‘will stand behind the determinations’ made using its own check employment status for tax (CEST) tool (whereas organisations use other third party tools at their own risk). HMRC says that this guidance should be read alongside existing off-payroll working guidance.
HMRC have also issued new guidelines for employment businesses which work with umbrella companies, with a focus on how those businesses should protect themselves and the workers they supply from ‘non-compliant’ businesses in their supply chains – mainly by ensuring they conduct the necessary due diligence and avoid over-complicated supply chain structures.
More generally, HMRC say that its Guidelines for Compliance (GfC) ‘offer HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes, including guidelines for employers, Corporation Tax and VAT’ and include best practice examples to ‘offer insights into the practical application of the law and HMRC’s administrative approaches, expanding the scope of HMRC material, beyond interpretation of the law’. To date, HMRC have published GfC on the following:
determining whether work qualifies as research and development for tax purposes;
