IR35 (Off-payroll) and Timesheet Portal

The private sector off-payroll rules are changing in April 2020, and we know that some of you are deeply concerned.  HMRC has released guidance notes that 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 on new developments and will implement changes to facilitate the deemed employment payments and reporting processes. Keep in mind, though, we do not plan to provide any tools for evaluating a worker's status, as we believe 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 include these in reports so that you can 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 directly from Timesheet Portal, allowing you to upload your payment information straight to HMRC. Since we do not plan to process your internal staff payroll, we advise you to obtain an additional employer PAYE reference number for managing your contract workforce payments. 

Naturally, some users may decide to stop using contractors through PSCs and instead utilise our PAYE functionality. We have been developing this PAYE functionality for some time and offer a range of features to assist in managing PAYE candidates, including:

• Holiday accrual and holiday pay requests / approval

• AWR tracking

• Payroll software integration

We understand that some of our clients will also use rolled-up holiday pay in their contracts to reduce the administrative burden of managing a holiday pay fund. We will soon release new changes that allow you to specify pay with rolled-up holiday pay and automatically generate the split in your pay run downloads. This way, when these are imported into your payroll software, there will be a clear distinction in your candidates' 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.