Supporting Guidance: employer compliance: guidance by subject: compliance revenue recording: status
Guidance around status is covered from COG907500 - Status.
Where a worker’s status is changed from self-employed to employed you should
- tell the engager to register for PAYE where there is no PAYE scheme
- calculate and pursue the underpayment for earlier years COG907620 - General Approach
- calculate and pursue any underpayment for ‘current year’ tax periods
- calculate and pursue interest
- consider behaviours and penalties (COG907640, COG914045, COG914050, COG914070)
- if appropriate, calculate any current year adjustments (see COG906590)
- record the net amount of tax, NIC, interest and penalties to be recovered from the employer/contractor on ECS/Caseflow (no compliance revenue can be scored for any tax, Class 2 NIC or Class 4 NIC that remains undisturbed as a result of Regulation 72F guidance see COG915320 - see below where the mandate process has been applied)
- consider and record Future Revenue Benefit where appropriate.
Note: See also COG915570 regarding non status PAYE failures.
Where it has taken some time to agree the status you should
- consider the guidance at COG915640.
Mandate Process followed
Where the recovery includes an amount set off against the employer’s liability from a SA repayment of an individual, only the net amount payable by the employer can be recorded.
|Total Tax and NIC to be recovered from the employer||= £20,000|
|Interest due||= £2,500|
|Total due||= £25,500|
|Less to be set off from SA repayments (mandates)||= £12,700|
|Less (informally set-off) Class 2 and 4 NIC||= £700|
|Net amount to be recovered from the employer||= £12,100|
|Amount to be recorded on Caseflow||= £12,100|