Tax Helpsheets
Back to HelpsheetsPAYE Problems of Casual Workers
HMRC regularly raises questions regarding casual workers and the payment of them (or not!) through the PAYE system.
Getting this wrong can cost a lot in the way of arrears of PAYE going back 6 years as well as interest and penalties.
The word "casual employee" has a specific meaning as far as HMRC are concerned. As far as HMRC are concerned a casual employee is someone taken on for no more than one week and not taken on again in the same tax year. Therefore, if someone is taken on for 8 days or 1 day earlier in the year and 5 days later in the year, they are not a casual employee and the PAYE system must be operated. If they are casual workers and they earn less than the PAYE threshold, you just need to keep a record of what you paid them, and their name and address.
However, even if they are casual workers, if the wages payment exceeds the PAYE threshold, a deductions working sheet needs to be prepared and PAYE applied accordingly. A BR or emergency tax code should be applied.
Please note that there are special rules for farmers and migrant workers.
How We Can Help You
HMRC can be strict in their application of these rules so please ask us for any clarification you require. We can also assist in any disputes with HMRC over casual employees.
Tax Checklist
Our tax busting checklist is designed to cover all of the common (and a few obscure) legal ways of saving tax. Of course this is a checklist and before implementing any specific ideas you must discuss them with us as everyone’s individual circumstances are different.
The checklist is designed to cover most of the routine items that the small and medium size business owner should be looking out for. There are often more ideas that a pro-active accountant can come up with so please talk to us about your own personal circumstances.
The checklist should take no more than 20 minutes to complete. You can then arrange to meet with us in person to go through any areas where tax saving opportunities have possibly been identified.
Download our Tax-Busting Checklist 2018-19
Personal Tax Organiser
Use our FREE personal tax organiser to organise all your personal tax papers to make completion of your end of year personal tax return easy.
Download our Personal Tax Organiser 2018-19
Download our Personal Tax Organiser 2017-18
Download our Personal Tax Organiser 2016-17
Download our Personal Tax Organiser 2015-16