The NFU and CLA have come to an agreement with HMRC for harvest casuals and casual beaters on how their tax is treated. Whilst the agreement allows the employer to pay the individual without any deduction of tax, it does not mean that the payments are not subject to tax and HMRC will contact the individual to collect payment at a later date.
The following arrangements exclude family members, individuals whose engagement is longer than 2 weeks or any casual or part-time staff employed for non-harvest/shoot day work. For these follow the normal guidelines. (www.hmrc.gov.uk/payerti/employee-starting)
PAYE due You do not have to deduct tax from what you pay an individual if they:
– are being taken on for less than two weeks, have not worked for you since 6th April and are not paid above the PAYE threshold (£155 per week for 2013/14), and
– are being paid at the end of the period, and
– have no contract for further employment.
You will need to obtain their full name, date of birth, gender, national insurance (NI) number and record the payments you make to them. Albert Goodman will be happy to provide a template for recording this information together with payments made.
The payroll return There is a temporary relaxation in place until 5 April 2014 allowing employers to report this information on a monthly basis. Whilst Albert Goodman would welcome and have indeed lobbied this relaxation becoming permanent, HMRC have stated that from 6 April 2014, employers will be required to report this information on a weekly basis. For those harvest casuals or casual beaters that qualify for no tax to be deducted you should have the tax code NT applied on the full payment submission (FPS).
NICs Whilst there are separate arrangements with HMRC for NI, these are largely superseded by the requirements to report PAYE. NICs will not be due on individuals earning below the primary threshold (£149 per week for 2013/14).
If you would like to know more about how Albert Goodman can assist you with your payroll requirements then please contact Matt Portt on 01823 286096 or via your local Albert Goodman Office.