One of the key amendments to the off-payroll working rules (applicable to both private and public sectors) as of April 2020, is the introduction of the status determination statement.
The ‘status determination statement’ could be in the form of document, or email but should be in writing and must provide both:
- the status decision made by the hiring organisation
- the reasons behind the decision
The hiring organisation must also provide this statement to both the contractor being engaged, and the next party in the supply chain. In most cases, there is only one intermediary (a recruitment agency) which will also be the fee-payer. However, in longer supply chains, this may not be the case and so the next party in the chain will be responsible to pass the statement up the chain until it reaches the fee-payer.
Until such time as the client completes the above, they will be considered the fee-payer and therefore liable for any taxes due.
In order to assist organisations with this requirement, we have put together a suitable template which you can use. Fill in the form below to download.