Perspectives

Off Payroll Workers – Tax and Legal Microsite

We are pleased to welcome you to Deloitte’s Tax and Legal service pages dedicated to supporting organisations who use ‘off payroll’ or contingent workers. The goal of these pages is to inform organisations of the most relevant tax and legal matters in this area, covering off-payroll workers engaged directly, via agencies or employment businesses (e.g. umbrella company or Professional Employment Organisations). You can also find a link to our archived content on IR35, the Journey to April 2021 here.

What can you find on these pages?

Deloitte’s latest insights, key updates and services. The planned introduction of the IR35 private sector rule changes (introduced on 6 April 2021) caused organisations to undertake significant preparations to ensure compliance with the law, with a wide range of outcomes. We aim to inform and support organisations which are:

  • End client users of off-payroll workers who removed Personal Service Companies (PSCs) from their supply chain and transitioned to alternative agency worker or employment company alternatives;
  • End clients who continue to use PSCs and therefore must comply with the IR35 rules;
  • End clients who engage self-employed individuals directly; and
  • Intermediaries within the supply chain.

Recent updates

  • September 2021 - Off payroll worker survey – Please participate in our off-payroll worker survey, aimed at collecting market information in order to identify pertinent trends and insights which can be shared back with you. To access the survey, please click here.
  • June 2021 - A new labour market Single Enforcement Body – Government re-affirms commitment to create a single body to enforce employment rights and regulate umbrella companies. To access our Fair Pay: Strategy & Compliance page, please click here.
  • June 2021 - The transition to employment companies (umbrella arrangements) – what you should know and how to best avoid fair pay governance issues. For more information, please click here.
  • June 2021 – Deloitte off payroll worker risk diagnostic – gold standard ‘what does good look like’ methodology to test post 6 April 2021 IR35 governance. For more information, please click here.
  • May 2021 – Global Contingent Workforce – Deloitte Client Insights - Deloitte Tax Ventures and Deloitte Global Employer Services teams conducted interviews with key global clients during March 2021 to better understand the needs and challenges around the management of Contingent Workforces. Please click here to see the output.
  • March 2021 - The Spring Budget: From an IR35 perspective, further changes were announced that impact individuals supplying their services through an intermediary, such as a personal service company (PSC) or an umbrella company, and who would be employed if engaged directly. The technical changes have been made to make sure the off-payroll working legislation operates as intended. The changes were enacted on 10 June with retrospective effect from 6 April 2021 and:
    • Address an unintended widening of the conditions where an intermediary is a company;
    • Improve the operation of the rules by extending the provision of information to the intermediary, as well as the worker; and
    • Improve the operation of the rules by extending the consequences of providing fraudulent information to any UK-based party in the labour supply chain.

Our Services

  • Off payroll worker risk diagnostic – a gold standard ‘what does good look like’ methodology to test post 6 April 2021 IR35 governance. For more information, please click here. Please participate in our off-payroll worker survey, aimed at collecting market information.
  • IR35 HMRC enquiry response and litigation assistance – we have unrivalled experience with supporting clients to successfully manage and respond to HMRC status enquiries across sectors.
  • Supply chain compliance & fair pay diligence – a supply chain risk assessment on pay governance and employment rights to ensure your workforce is treated fairly and you avoid potential reputational consequences of supply chain non-compliance.
  • Technology Solutions – our off-payroll worker workflow management tool and PSC identification checker. For more information, please click here.
  • Employment law advisory/defence of tribunal claims – in the event of court action, we have unrivalled experience of successfully supporting clients through the litigation process.
  • Employment Law status of contractors – advising on the employment rights of contractors (for example their ability to bring unfair dismissal or discrimination claims or claims for other employment rights, such as holiday pay and sick pay) and their contractual arrangements and entitlements.
  • IR35 Contracting – legal/employment law risks – advising on IR35 legal risk in supply chain arrangements, drafting contractual protections whether operating inside or outside the scope of IR35, concluding agreements with umbrella companies and agencies and dealing with risk under the Agency Workers Regulations, TUPE and other similar legislation.
  • Global Contingent Workforce – we support clients managing global contingent workforces navigate a range of challenges, including key priorities such as talent access, workforce planning, strategy, compliance and cost.
  • IR35 Status Assessments – We provide technical advice on complex employment status tax matters, including support with resolving ‘undetermined’ or inconclusive cases, as well as offering wider outsourced services in this area. For more information, please click here.
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