skip to navigationskip to main content

Call: 0148 345 3429

Tax Helpsheets

Back to Helpsheets

PAYE 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.

INDUSTRY NEWS
AND BLOG

While the Government is currently paying 80% of workers’ salaries up to £2500 a month for some 8.4 million workers under its furlough scheme, it has made clear that it cannot continue to provide this unprecedented lev...

Running a business can be tricky at the best of times. With so much to do, organise and look over, sometimes it can feel like you are drowning in paperwork and to-do lists. As a small business, growth and expansion are e...

As the saying goes, “nothing’s as certain as death and taxes”. Whilst all of us in working life are guaranteed to be taxed, there are always changes to tax rates, thresholds and wages that affect businesses and tho...

SHOW ALL