As set out in the Indirect and third party relationships ― overview guidance note, different rules apply according to the type of engagement with a worker and the type of client the work is performed for.

This note looks at the situation where:

1. •

   a client is in the private sector and deemed to be ‘small’ by the relevant legislation

2. •

   a client is hiring a worker via a third party (known as an intermediary) to carry out some work

3. •

   the worker carrying out the work is not an employee

This type of engagement is covered in the legislation by a chapter called ‘Workers’ services provided through intermediaries to small clients’ which can be found in ITEPA 2003, ss 48–61. This type of engagement is often referred to as ‘off-payroll working’ or ‘IR35’. This note will use the term ‘off-payroll working for small clients’ throughout.

This notes sets out where the guidance relating to this type of engagement can be found and provides an introduction to the PAYE aspects of off-payroll