IR35 (Off-payroll) and Timesheet Portal

The private sector off-payroll rules are changing in April 2020, and we know some of you are deeply concerned.  HMRC have released some guidance notes which you can find and read here for more information. The good news, however, is that as always, Timesheet Portal will be here to help. 

We are currently working through new developments and will be implementing changes to facilitate the deemed employment payments and reporting processes. Keep in mind though, we do not have plans to provide any tools for evaluating a worker's status, as we feel this should be managed externally. Our focus is on the payment calculations. By early January 2020, you can expect to see employee National Insurance and income tax deductions included in self-billing invoices. Additionally, we will also include these in reports so that you are able to extract the deductions and produce your own reports for HMRC.

Preparing for the Change

By April 2020, we plan to provide HMR FPS (Full Payment Submission) functionality direct from Timesheet Portal, which means you can upload your payment information directly to HMRC. As we don't have any plans to process your internal staff payroll, we will be advising you to obtain an additional employer PAYE reference number for managing your contract workforce payments. 

Naturally, some of our users will choose to stop employing contractors through PSCs, and will therefore be making use of our PAYE functionality. For them, we have been building our PAYE functionality for some time now, and provide a range of features to help you manage PAYE candidates, including:

• Holiday accrual and holiday pay requests / approval

• AWR tracking

• Payroll software integration

We understand some of our clients will also be making use of rolled-up holiday pay in their contracts, to reduce the administrative burden of managing a holiday pay fund. We are shortly releasing some new changes to allow you to specify pay with rolled-up holiday pay, and automatically produce the spit in your pay run downloads. This way, when these are imported into your payroll software, there is a clear distinction in your candidate's payslips between base pay and holiday pay.

Be Part of Future Developments

At Timesheet Portal, we are always looking for ways to give our clients as much value as we can. All of our updates and changes begin with you. Therefore, if you have any complaints, suggestions or would just like to provide feedback - we are waiting to hear from you.