{"id":29270,"date":"2021-03-16T09:17:04","date_gmt":"2021-03-16T09:17:04","guid":{"rendered":"https:\/\/www.clearbooks.co.uk\/blog\/?p=29270"},"modified":"2022-02-21T13:49:02","modified_gmt":"2022-02-21T13:49:02","slug":"clear-books-payroll-supports-businesses-affected-by-the-new-off-payroll-working-rules-ir35","status":"publish","type":"post","link":"https:\/\/www.clearbooks.co.uk\/blog\/clear-books-payroll-supports-businesses-affected-by-the-new-off-payroll-working-rules-ir35\/","title":{"rendered":"Clear Books Payroll supports businesses affected by the new off-payroll working rules (IR35)"},"content":{"rendered":"\n<p>Clear Books is proud to provide small businesses with a simple payroll solution that links directly to Clear Books accounting software to support efficient bookkeeping processes. Recently, we\u2019ve made changes to our payroll to help customers affected by the new off-payroll working rules, known as IR35, which come into play as of 6th April 2021.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the IR35 off-payroll working rules?<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.gov.uk\/topic\/business-tax\/ir35\">off-payroll working rules<\/a>, commonly known as IR35, are a piece of legislation brought into place to ensure that contractors working like employees via their Personal Service Company (PSC) pay similar levels of tax and national insurance to those who are employed directly. If an engagement between a contractor and their client is considered to fall within these rules (known as \u2018deemed employment\u2019), then the contractor is required to be treated as an employee for tax purposes only. IR35 doesn\u2019t bring in any changes to the treatment under employment law, employee benefits, or contractual matters, for example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What\u2019s changing?&nbsp;<\/strong><\/h2>\n\n\n\n<p>Before the change, if a contractor provides services to a public sector client, the client is responsible for determining whether that engagement falls within the IR35. As of 6 April 2021, HMRC will widen the scope of these rules beyond public sector clients, to also include clients that are medium or large businesses. If the client determines that their engagement with a contractor falls within the IR35, then they (or the deemed employer if this is different to the client) are responsible for deducting tax and national insurance contributions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Clear Books\u2019 payroll supports businesses affected by the IR35<\/strong><\/h2>\n\n\n\n<p>Clear Books has added a new checkbox to the \u2018Employment Details\u2019 section of the form used to add\/edit an employee, to denote them as being within the scope of off-payroll working. This will allow businesses paying contractors via PAYE to mark them as employees for tax purposes only. When this checkbox is selected the system will make the following adjustments:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Flag employee as an off-payroll worker to HMRC on the FPS submission<\/li><li>Disable any statutory payments for the employee<\/li><li>Disable any pension calculations for the employee<\/li><li>Employment allowance will not be used against the employee<\/li><\/ul>\n\n\n\n<p>If your business will be running payroll for contractors caught by the new off-payroll working rules, you can rest assured that your payroll will be compliant using Clear Books payroll.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Clear Books Payroll Software<\/h2>\n\n\n\n<p><strong>Clear Books is an award-winning online accounting, payroll &amp; HR software for small businesses. Thousands of business owners, contractors, freelancers and sole traders across the UK use our easy-to-use online accounting software to manage their business finances. All users benefit from the outstanding free telephone and email support. Clear Books was launched in London in 2008 and offers a free 30 day trial with free ongoing support and bank feeds. We\u2019re rated as \u2018Excellent\u2019 on Trustpilot.<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/secure.clearbooks.co.uk\/account\/register\/home\/?module=OP&amp;signUpType=account#_ga=2.169272163.310444322.1637232414-1135670555.1634828996\"><strong>Get a free 30-day trial of Clear Books <\/strong><\/a><strong><a href=\"https:\/\/secure.clearbooks.co.uk\/account\/register\/home\/?module=OP&amp;signUpType=account#_ga=2.169272163.310444322.1637232414-1135670555.1634828996\">payroll<\/a><\/strong><a href=\"https:\/\/secure.clearbooks.co.uk\/account\/register\/home\/?module=OP&amp;signUpType=account#_ga=2.169272163.310444322.1637232414-1135670555.1634828996\"><strong> software here<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Clear Books is proud to provide small businesses with a simple payroll solution that links directly to Clear Books accounting software to support efficient bookkeeping processes. Recently, we\u2019ve made changes to our payroll to help customers affected by the new [&hellip;]<\/p>\n","protected":false},"author":145,"featured_media":29259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-29270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Clear Books Payroll supports businesses affected by the new off-payroll working rules (IR35) | Clear Books<\/title>\n<meta name=\"description\" content=\"Clear Books\u2019 payroll supports businesses affected by IR35, so you can rest assured that your payroll will be compliant using Clear Books.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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content=\"2021-03-16T09:17:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-21T13:49:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.clearbooks.co.uk\/blog\/wp-content\/uploads\/2021\/02\/girl-using-android-phone-and-pc-laptop-mockup-template-v3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"488\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David Carr\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ClearBooks\" \/>\n<meta name=\"twitter:site\" content=\"@ClearBooks\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Carr\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" 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