Updated: Mar 5
We at Quinton Oakes hope you’ve all had a fantastic Christmas and enjoyed eating the turkey with the carrots and the spouts. This time in the comfort of your friends and family without a lockdown. This will be our last a blog of 2021, so let us finish the year with talking about the topic off ‘Off Payroll’. What is means and how does it affect your business.
What Exactly is Off Payroll?
Off Payroll means when someone gets paid outside the realms of a salary. For example, a contractor, or someone who is a self-employed freelancer will get be classed as Off Payroll. As they may not get paid the same way as a typical employee would get paid.
The term IR35 is often known as Off Payroll working rules, this is basically anti avoidance tax legislation. This is help prevent people from hiding forms of employment that would them get the same benefits as a traditional employee. Benefits such as sick pay and holiday pay. Usually HMRC will class you as someone that is IR35 if you are being a treated as a full-time employee and not as a self-employed contractor.
How does Off Payroll Apply to My Business
A lot of business will hire freelance workers to save costs and to handle short term and long-term projects, which may range from as low as 3 months up 5 years. Also, furthermore some of the larger companies may hire self-employed consultants and agencies for invaluable advice on how to improve their operations, their human resources department as well as their long-term business strategy. Furthermore, businesses will hire tradesmen such as your builders, carpenters, electricians, painters, decorators to renovate their offices. To make their place of operations more work friendly and comfortable for their employees to work in.
Here at Quinton Oakes are dedication to informing on the latest topics and news regarding the wonder world of payroll and human resources. We look forward to what next year brings on. We wish you all a Happy New Year.