What is off-payroll?

Off-payroll is a classification for service providers who are paid by methods other than payroll, for example by issuing invoices for customers to pay. Off-payroll applies to freelancers, consultants and contractors. The term is commonly associated with the public sector.

Off-payroll in relation to IR35

Off-payroll has been a commonly used term in the discussion of the intermediaries legislation IR35. Under IR35, off-payroll workers are deemed to be employees in all but name and must be treated as workers by the engaging organisation.

While not as common, the term “off-payroll” has also been used in the private sector, particularly during HMRC’s consultation on IR35 in the private sector.

Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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