Implications for the end client

Produced by Tolley

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Implications for the end client
  • The contract
  • HMRC enquiries
  • Consequences for the end client of the off payroll rules (IR35) applying

Implications for the end client

This guidance note considers the position of an end client where either the standard off-payroll (IR35) rules apply (see the Personal service companies ― overview guidance note), a public sector body (see the Off payroll working (IR35) in the public sector ― overview guidance note) or a large or medium-sized private sector body from 6 April 2021 (see the Off payroll working (IR35) in the private sector ― overview guidance note). In general, this means that the end client is engaging the personal services of an individual.

There are a number of advantages to the end client in engaging the services of an individual via a company rather than as an employee ie an indirect or third party relationship, whether they engage directly with an intermediary such as a PSC, or whether it is through an agency or other third party. If there is an employment relationship, the end client has to operate PAYE on the amounts paid to the employee, and has to pay NIC (current rate of 13.8%), the apprenticeship levy (if applicable), as well as complying with numerous employment law requirements (this guidance covers only the tax issues

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