Off payroll working (IR35) ― particular NIC points and planning

Produced by Tolley

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

  • Off payroll working (IR35) ― particular NIC points and planning
  • Office-holders
  • The normal position
  • National insurance deeming rules
  • How the deeming provisions affect off payroll work (IR35)
  • Cross-border workers
  • Income-splitting

Off payroll working (IR35) ― particular NIC points and planning

This note covers:

  1. the position where the tax rules for off payroll working (IR35) are not the same as those for NIC, and

  2. how a personal service company (PSC) can be used to split income between partners and family members, thereby reducing the total tax and NIC due

For an outline of rules, see the Personal service companies ― overview guidance note. For the rules, see the Anti-avoidance rules ― off payroll working (IR35) guidance note. For the calculation methodology, see the Off payroll working (IR35) ― calculating the deemed employment payment guidance note.


The tax rules were specifically extended to include office-holders for 2013/14 onwards but HMRC’s view is that no separate NIC legislation was required to apply Class 1 NIC to the deemed employment payment in the case of office-holders. There is legislation on the definition of office-holders for the purposes of Class 1 NIC included in the National Insurance Contributions Act 2014, but this is only a clarification about the definition of ‘employed earner’ in the case of office-holders generally. Both tax and NIC can apply to office-holders caught by the rules following the Finance Act 2013 extension.

The normal position


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