ECH22545 - Yield Recording: Status
You should follow the guidance at
ECH11000 onwards.
Where a worker’s status is changed from self-employed
to employed you should
- calculate and pursue the underpayment for earlier years ECH11060
- calculate and pursue interest
- consider penalties ( ECH11065, ECH21020, ECH21025, ECH21040)
- calculate any current year adjustments
- record the net amount of tax, NICs, interest and penalties to be recovered from the employer/contractor on ECS ( no claim can be made for any tax, Class 2 NIC orClass 4 NIC that remains undisturbed as a result of Regulation 72F guidance –see below where the mandate process has been applied)
- record the amount of the current year adjustment on ECS
See also
ECH22512 regarding non status PAYE
failures.
Where it has taken some time to agree the status you
should
- consider the guidance at ECH22540
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
For example
| Total Tax and NIC to be recovered from the employer | = £20,000 |
| Interest due | = £ 2,500 |
| Penalty | = £ 3,000 |
| Total due | = £25,500 |
| Less to be set off from SA repayments (mandates) | = £12,700 |
| Less (informally set-off) Class 2 & 4 NIC | = £ 700 |
| Net amount to be recovered from the employer | = £12,100 |
| Amount to be recorded on ECS | = £12,100 |
Note:
The yield described above which is claimable will be counted for both internal and external reporting purposes.
