Off-payroll working in the private sector – Education

Following the release of recent HMRC guidance on the of payroll working rules in the Government’s Draft Finance Bill, charitable organisations could see a substantially increased compliance burden and an increase of at least 13.8% on the cost of those contractors caught out by the new regime.

The new rules, which are due to come in to force from 6 April 2021, mean private sector educational organisations, other than those qualifying as “small”, will have to consider whether to deduct tax and national insurance from payments they make to contractors operating through their own limited companies. The responsibility and rules for determining employment status for contractors who are not operating through a limited company (or other intermediary) remain the same.

Many questions will arise for organisations, and the costs of getting this wrong could be substantial.

How Moore Kingston Smith can help

Moore Kingston Smith are here to help your organisation navigate these complex rules by offering an off-payroll worker solution drawing on our experience with the existing public sector regime and dealing with HM Revenue & Customs on employment status issues generally.