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HMRC launches new employment status service tool

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HMRC has launched its new ‘check employment status for tax’ online tool, which workers, engagers, or agencies can use to check whether the intermediaries legislation applies to a particular engagement in the private or public sector (see http://bit.ly/2mSlIWu).

HMRC has launched its new ‘check employment status for tax’ online tool, which workers, engagers, or agencies can use to check whether the intermediaries legislation applies to a particular engagement in the private or public sector (see http://bit.ly/2mSlIWu). This replaces the old employment status indicator tool.

The service can be used for current or future engagements in both private and public sectors and will allow HMRC to determine whether:

  • the intermediaries legislation (IR35) applies to an engagement; and
  • a worker should pay tax through PAYE for an engagement.

HMRC has stated that it will stand by the results given, unless a compliance check finds the information provided isn’t accurate, although it will not stand by results achieved through contrived arrangements designed to give a specific outcome from the service.

HMRC has also updated its IR35 guidance to refer to the new employment status service.

Issue: 1345
Categories: News
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