# Information on Off-Payroll Workers

1. Off-Payroll working rules before 6 April 2021: Before 6 April 2021, if the
    contractor / intermediary's worker provides services to a client (deemed
    employer) through the contractor / intermediary in the:
    
    * Public sector, the client must decide the contractor / intermediary's
      employment status
    
    * Private sector, the contractor / intermediary must decide worker's status
    
    

 2. Off-Payroll working rules from 6 April 2021: All public sector clients and
    medium or large-sized private sector clients will be responsible for
    deciding the contractor / intermediary's worker's employment status. This
    includes some charities and third sector organizations. If the off-payroll
    working rules apply, the contractor / intermediary's worker's fees will be
    subject to Income Tax and National Insurance contributions.
    
    

 3. RTI Flag - Off-Payroll Worker subject to the rules: Data Item # 208 in the
    Full Payment Submission (FPS) - is the Off-Payroll Worker Indicator field.
    If this indicator is "Yes", then Student Loan or Postgraduate Loan
    deductions should not be made or reported. The worker will not be entitled
    to Statutory Payments (SAP, SSP, SMP, SPP, ShPP or SPBP) and is not subject
    to auto-enrolment into a workplace pension.
    
    
    
    
    Off-Payroll Workers Key Terms
    
    
    
    1 Off-payroll worker: An "off-payroll worker" is a worker that provides
    their services through their own intermediary.
    
    
    
    2 Intermediary: An intermediary will usually be the worker's own personal
    service company, but could also be any of the following:
    
    * a partnership
    
    * a personal service company
    
    * an individual
    
    3 IR35: Off-payroll working rules applicable to contractors or
    intermediaries whose workers provide services to clients, i.e. to medium or
    large-sized non-public sector organizations, or to public sector
    organizations.
    
    
    4 Deemed Employer: The person responsible for deducting income tax and NICs
    on payments to the worker's intermediary is known as the "deemed employer".
    Also known as "fee payer".
    
    
    5 PSC: Personal Service Company.
    
    
    6 CEST: Check Employment Status for Tax (CEST) tool. HMRC's Check Employment
    Status for Tax (CEST) tool can be used when deciding whether the off-payroll
    working rules apply to an engagement.