The off payroll working rules (IR35) can apply if a worker/contractor/freelancer/consultant that you engage provides a service through either their own limited company or another type of intermediary to the council.
Examples of intermediary are:
The purpose of the IR35 legislation is to ensure that all contractors/workers working in an organisation, in the same way as permanently hired staff would pay the same Tax and National Insurance contributions as an employee.
If you use an individual or intermediary to undertake a service within your school, you as a manager will be classed as the engager and will be responsible for determining if the off payroll working rules applies by completing the CEST tool, questionnaire and issuing the status determinations when required.
We strongly advise that no payment should be made until the Council Payroll team has received satisfactory evidence that Employment Status for Tax has been determined.
If the engagement is through a recruitment agency/consultancy you will need to ensure the following:
This should be carried out before the individual is engaged or carries out any work
When do the changes take place and what happens if I have already engaged an Agency, intermediary, individual or other company?
From 6 April 2021, a status determination statement will need to be completed and issued for any worker/ contractor etc that continues to provide a service past this date. If a service is due to expire before 5 April 2021 and there is due to be no continuation of service, then no further action will be required.
For payments made after 5 April 2021 a new Check Employment Status for Tax (C.E.S.T) will be required, once this has been received you will be required to complete and issue a status determination statement, a copy of the completed form should be sent to the payroll team at [email protected]. Once the council payroll team has agreed the status you will be advised to send out the status determination status to the individual or intermediary.
We strongly advise that payments should not be made until this process is complete.
Please follow the disagreement process in the documents below.
By contacting the payroll team at: [email protected]