Tax Helpsheets
Back to HelpsheetsPAYE Problems of Casual Workers
HMRC regularly raises questions about casual workers and their payment through the PAYE system. Incorrect handling can result in significant costs, including arrears of PAYE for up to six years, interest, and penalties.
As per HMRC’s definition, a "casual employee" is someone hired for no more than one week and not rehired within the same tax year. If an individual works for longer than one week or is rehired later in the tax year, they are not considered a casual employee, and the PAYE system must be operated.
If casual workers earn below the PAYE threshold, employers only need to maintain records of their name, address, and payments made. However, if their earnings exceed the threshold, PAYE must be applied.
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