PAYE23015 - Employer records: employer types: casual beaters
This subject is presented as follows
Background
Most shoots
- Engage casuals to work as beaters during the shooting season
And
- Pay for these services in cash
Although PAYE does not usually have to be operated, shoots are still required to keep records of earnings including names and addresses of beaters and the total amount of their earnings during the year.
The agreement
A special arrangement was reached between HMRC and the Country Land and Business Association (CLA), formerly the Country Landowners Association (CLA), with effect from July 1985, which clarified how operators of grouse shoots should operate PAYE for these ‘casual beaters’. This agreement should ensure that a common line is taken by both
- Employers
And
- Processing Offices
The CLA issued a Briefing Note to its members on 1/9/1997.
This treatment can only be applied to beaters who are truly engaged on a casual basis and do not have any other more permanent connection with the estate. A regular employee of the estate who chooses to do some beating for the estate, or even a person who does a significant amount of other casual work for the estate could not be treated as a daily casual.
The agreement does not affect the way in which the employer record is treated. If, exceptionally, you are required to set up a new employer record for a shoot you should create the record with a P scheme type in the usual way. Follow the guidance at PAYE20136.
A similar arrangement is in place for casual harvest workers - see PAYE23025.
PAYE & NIC treatment
HMRC recognise that practical problems will arise in trying to operate PAYE procedures in full for a short-term arrangement. In practice there are few estates where there will be more than 10 or perhaps 15 days at most in the whole year on which there will be shooting on a scale requiring beaters and moreover that the shooting will be taking place at separate intervals.
Where a beater is engaged for a period of only one day or less, and the employment ends that day with no agreement for further employment, it is accepted that PAYE should not be applied where such beaters are paid off in cash at the end of the day.
The agreement does not apply to the deduction of National Insurance contributions. If a beater's casual earnings were such that they equalled or exceeded in any earnings period the National Insurance Lower Earnings Limit the shoot would be required to keep National Insurance records, deduct both primary and secondary National Insurance contributions and complete forms P11 and P14.
The following table explains how certain types of workers are to be treated under the agreement.
|
Workers |
Period of work |
PAYE Treatment |
|
Daily casuals |
One day or less. Employment ends at the end of that day. No contract for further employment. Paid less than the NICs lower earnings limit |
Do not deduct tax. Keep a record of the employee's name, address and amounts paid. Enter the details on form P38A at the end of the tax year |
|
Daily casuals |
Paid at or more than the NICs lower earnings limit |
Do not deduct tax. Complete form P11 recording the employee's name, address and total amounts paid in the week. Enter 'NI' in the code space on form P11 Enter P38 and so on |
|
Students |
Only during their holidays |
The usual P38(S) procedure applies |
Records
An employer may be required to report on an annual return P35 at the end of the tax year, details of any person who has received in excess of £100.
Adequate records must, therefore, be maintained of all payments made to casuals irrespective of amount. Shoot-owners or other organisers are likely, in addition, to find that the retention of these records will be of assistance in satisfying auditors that PAYE liability does not arise.
Advice
Try to solve any problems locally, but if this is not possible refer the matter to
PSN PAYE Technical
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
