Do you have workers not on the school payroll?
If you do then the following is important!
As you will be aware from previous communications, the reformed Intermediaries Regulations (IR35) took effect from Thursday 6 April 2017 and affects how all public bodies, including all Schools and the Council, pay and manages tax for workers contracted to deliver work on their behalf. The new regulations apply to all payments made from Thursday 6 April 2017 – even if the work was delivered prior to this date.
This is a reminder for Governors that it is the School’s responsibility to correctly determine the employment status of anyone they contract with to undertake any work and pay them accordingly. If the School does not make the correct employment status decision and subsequently manages the payment incorrectly, the liabilities for Pay As You Earn (PAYE) (tax) and National Insurance Contributions will fall on the School, along with interest and penalty charges.
Has your school taken the following action?
- Visited the dedicated page on The Grid for schools, which contains a detailed guidance document, the processes to follow for evaluating and setting up new workers and for invoice payments, as well as template variation letters, payroll forms, plus previous briefing notes and communications. http://thegrid.org.uk/schoolworkforce/IR35/
- Reviewed all of your ‘off payroll’ workers to check what their employment status should be and that you are paying them correctly.
- Integrated IR35 into your procurement process. When you procure a worker/company to provide a service you must be considering whether the IR35 regulations apply and not confirming any contract until you have assessed their employment status.
It is essential that you ensure your School is aware of its responsibilities and is correctly paying and managing tax for all of its workers and contractors, including self-employed workers, those working via an intermediary and any intermediaries sourced via recruitment agencies.
Further information on these regulations can also be found at https://www.gov.uk/guidance/ir35-find-out-if-it-applies
**Look out for further communications to follow regarding some IR35 training sessions coming in March and April!**