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GP UK - Guidance Document To Implement Off Payroll Working In Public Sector (Doc ID 2241183.1)

Last updated on MARCH 09, 2020

Applies to:

PeopleSoft Enterprise HCM Global Payroll UK - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.


Changes are being progressed from April 2017 that impact public authorities, agencies or third parties who pay fees to Personal Service Companies.
Effectively the liability to operate Tax, NICs and Apprenticeship Levy must be applied by the fee payer where the contract is in scope. There is no double liability as the workers intermediary is allowed to set the incomes taxed at source against the income from the intermediary.

The Key Payroll requirements are:

• Tax and/or NI to be worked out by the fee payer on the VAT Exclusive amount of the fee (with deductions to allow for expenses and materials applicable)
• The situation is treated as employment income for tax and NIC purposes
• PAYE regulations apply with requirements for: normal RTI FPS reporting, issuing of P45 and P46 and the application of 0T/BR tax codes if no former employer P45 is provided
• There is no entitlement of these individuals to: Pensions, Statutory Sick Pay or Statutory parental pay payments (such as SMP, SAP, SPP and ShPP). They may have entitlement to Maternity Allowance etc from DWP
• The NI is recorded on the HMRC records for state provided contributory benefit purposes
• The Secondary NI is the fee payers liability - the cost can only be passed on within the renegotiation of the agreed payment rates


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