How can off-payroll workers be entitled to statutory payments?

Off-payroll workers are not employees of the "fee payer" / "deemed employer". Hence they are not entitled to statutory payments.

-> To be eligible to claim statutory payments the worker must be paid a salary - which is configured as a "non-taxable" and "non-NICable" payment - through the payroll of their intermediary.

-> Such non-taxable and non-NICable payments will be reported by the off-payroll worker's intermediary on an FPS reported under RTI Data Item # 58A "Value of payments not subject to tax or NICs in pay period".

-> Please note that the RTI Data Item #208 "Off-Payroll Worker subject to the rules" flag / marker / indicator should only be used by the "deemed employer" / "fee payer".

-> The off-payroll worker's own intermediary (usually a limited company or Personal Service Company - PSC or partnership) should not use this Indicator.

HMRC Link:-

https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm10033a