WORKER - IR35 "DEEMED OFF-PAYROLL"
- Stuart McKay
Pay and bill
The following page is for RSM Pay and bill clients only. For software only clients, please visit our maintaining contractors page here
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IR35 Deemed Off-Payroll Workers
What is an IR35 Off-Payroll deemed worker?
Off-payroll workers are contractors that are deemed in scope of the IR35 legislation and will be subject to Tax and National insurance deductions from any payments made to them. For more information please refer to https://www.gov.uk/guidance/off-payroll-working-for-clients
How do I check the status of a worker?
This responsibility falls with you as an agency to check each worker to ensure the correct employment status is applied. Please refer to HMRC's employment status tool https://www.gov.uk/guidance/check-employment-status-for-tax for further guidance.
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Adding a New IR35 Deemed Worker To RSM InTime
The ability to process IR35 deemed off-payroll workers will be de-activated by default on your instance of InTime. Please contact your RSM pay and bill executive to have the functionality enabled.
What do I need to do to set up an IR35 deemed worker?
You will need to add the worker to RSM InTime and provide a copy of your worker's HMRC starter declaration and P45 if they have provided one to you.
How do I add the worker to RSM InTime?
Prior to entering a new worker, you should ensure that you have the following details to hand:
Worker Title
Worker Name
Worker Address
Worker Limited company address (if different to the worker address)
Worker VAT status
Worker Gender*
Worker National Insurance Number*
Worker Email Address
Worker Bank Details (We can only make payments direct to a UK bank account, please contact us for details on making payments to a foreign account).
Worker Date of Birth*
Worker Date of Joining*
Step by step instructions
Navigate to Profiles > Workers.
Click on the "Create" button located at the top right hand corner of the page.
In the Worker Type field on the “Main” tab, select “Ltd”.
Tick the “Pay through InPay” option on the “Main” tab.
In the “Payroll” field, select the Off-Payroll (IR35) frequency.
Enter the above noted worker details in to the appropriate fields.
Click "Save" located at the foot of the current page. RSM InTime will check for any missing or incorrectly entered data and will highlight the field red.
If you have received a P45 or HMRC starter declaration from your worker, please ensure this is uploaded to our Client Portal Document Centre.
Do I need to supply an HMRC starter declaration or a P45 from the workers previous employment?
No, you don't need to provide these documents. However, we strongly recommend submitting one to ensure correct tax treatment. If neither document is provided, tax will be calculated at the basic rate.
Where can I find a copy of HMRC's starter declaration to provide to my workers?
The starter declaration can be downloaded directly from HMRC's website here.
How do I provide you with the starter declaration/P45?
HMRC Starter declarations and P45s need to be uploaded to our Client Portal Document Centre.
Your worker may be placed on an emergency tax code if we are not supplied with an HMRC starter declaration or P45
Payslips
How do workers receive their payslip?
Two documents will be issued to an IR35 deemed off-payroll worker.
Self-bill invoice/Remittance: This document displays a breakdown of the timesheet being paid together with a summary of the deductions made. This document is emailed to the workers email address.
Payslip: This document displays the gross amount paid together with the deductions and the Tax code applied to the worker.
Payslips are not emailed to workers. Instead, workers access payslips through our Payslip Portal.
Payslip notifications and self-bill invoices are usually emailed to the worker the day before pay day.
Will workers receive log in details to access the payslip portal?
Workers will receive a payslip notification once a new payslip becomes available to view on their portal. Workers will need to follow the instructions on the email provided to gain access for the first time. To register, workers will need to provide their email address, National Insurance number and company code. More details on the registration process can be found here.
What will the worker payslips look like?
An example of a worker payslip and self-bill invoice can be viewed below. The payslips will be branded with your logo.
Self-bill invoice | Payslip |
|---|---|
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 Click to enlarge
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Leavers
What do I need to do when an IR35 deemed worker finishes working with our Agency?
Please email your pay and bill executive contact at paybill.esl@rsmuk.com.
Please include the worker name and leave date.
How do my workers receive a copy of their P45?
Worker P45s are made available through the worker's payslip portal account.
Can P45s be emailed to a worker instead?
No. Workers must log in to their payslip portal account to access their P45.
How long will leavers have access to their payslip account?
Leavers payslip portal accounts will remain active for 90 days from their leave date. Leavers are notified of this each time they log in to the payslip portal.
End Of Year (P60s)
Will my workers receive a P60?
Yes. IR35 deemed off-payroll workers will receive a copy of their P60 as long as they were employed at the end of the tax year. P60s are available to all applicable workers through the payslip portal.
When will P60s be made available to my workers?
P60s are usually made available to workers within a few weeks of their final payment for the tax year. All P60s are made available before HMRC’s deadline of the 31st May.
Reports
IR35 deemed payroll reports can be split in to two parts. The timesheet margin and payroll reports.
Timesheet margin analysis
RSM InTime provides you with access to our timesheet margin reporting tool. The reporting tool allows you to create and save your own custom layout, along with the ability to customise your own date range. You can choose to run your report for the current period or alternatively run the report over several months. Full details on the margin report can be found here.
IR35 deemed payroll reports
We will provide you with a standard set of reports that detail all the costs associated with your IR35 deemed off-payroll workers. This will include reports such as:
Gross to net summary
Copy payslips
P32 Detailing your PAYE liability
These reports will be uploaded to our secure Client Portal Document Centre.
Can you email me the reports each week?
No. As the reports contain sensitive data, they will be made available to you through our Client Portal Document Centre.
Queries/Questions
Who do I contact if I have a payroll question or need to speak to someone?
Your pay and bill executive contact can be contacted on the details below:
Tel 01324 667 230
Email PayBill.ESL@rsmuk.com
Can my worker call you directly if they have a pay or timesheet query?
Unfortunately, we will only respond to queries or questions raised by you or an authorised administrator in your business. Workers should direct their queries to you.