Whenever you engage the services of an individual, partnership or small limited company, a decision needs to be made on when they pay the tax and national insurance for the work. This will be one of two options:<\/p>\n\n\n\n
This has nothing to do with employment law \u2013 they are still an external supplier. Where a supplier is deemed as needing to paid on payroll for tax purposes, we\u2019re required to also pay over additional amounts to cover Employer\u2019s NI. This will affect your budget.<\/p>\n\n\n\n
To determine this, you must use the DCC Employment Status Check. The information provided in the tool will be used by the Tax Compliance Team to decide when the tax and National Insurance will be paid on the work. The tool can be accessed via the Employment Status Portal<\/a>.<\/p>\n\n\n\n It\u2019s our legal responsibility to make this decision \u2013 we have no choice. If HMRC audit us and discover someone has been incorrectly treated as ‘self-employed for tax purposes’, DCC would become liable for any tax and national insurance due, plus interest and penalties. If the incorrect decision was due to misinformation, this would be charged against your budget.<\/p>\n\n\n\nWhy is it important?<\/h3>\n\n\n\n
Where can I go for guidance?<\/h3>\n\n\n\n