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Casual Labour

Casual Labour

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It is some years since I have encountered a 'casual labour' situation. I seem to recall there was a form to sign declaring that the 'employee' would declare their earnings. This avoided the need to add them to the payroll.

Is this still the case, or is my memory playing tricks! The workers in question may be employed for one or two weeks only.
Adrian Lawrence

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By lfidler
17th Apr 2003 16:07

A few favoured categories can be found, but they are exceptions
I am not sure what your casuals do but the following links to the Inland Revenue's own staff instruction manuals on various occupations may be of use as there are some, very limited exceptions to the general rule of 'if in doubt, payroll it'.

Journalists: http://www.inlandrevenue.gov.uk/manuals/esmmanual/part4000/esm4183.htm

Agricultural workers: http://www.inlandrevenue.gov.uk/manuals/echmanual/ech13000/ech13020.htm

Students: http://www.inlandrevenue.gov.uk/pdfs/ir60.htm (see particularly the section about working during the holidays and the use of form P38(S)to avoid the need for PAYE to be operated).

In other cases, I can only echo the words of other contributors and point out the Revenue's own guidance for its staff (in its Employer Compliance Manual at para 13256) that reads: 'Employers often describe workers as 'casuals' to justify opting out of their tax and other obligations. ...PAYE applies to casual employees in the same way as it does to other employees.'

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22nd Apr 2003 10:37

a bit alarmed
Forgive me if I have misunderstood, but I am a bit alarmed by the apparent idea that a P38S exempts a student rom PAYE. It does not. It allows the employer (only during the long vac BTW) to pay up to the personal allowance before deducting income tax.

National Insurance Contributions are deductible in the normal way.

These people are not excluded from the payroll and do not pay their own tax.

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17th Apr 2003 10:49

you said it yourself

You used the word "employment". This is the key to the answer.

Nobody can be employed other than under PAYE rules. The duration is irelevant. I sometimes employ people for a couple of hours at a time (ie those moonlighting from other practices who are not self employed subcontractors) and I get them to complete a P46.

A blind eye may have been turned to casual labour situations in the past but the Revenue are not as gentle as they used to be. An offence would appear to have been committed and it will be necessary to account for PAYE and NICs on the grossed up sums if the deductions cannot be recovered from the recipients. Do this by 19 April ie send the money to the Collector today to avoid interest charges.

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