Evidence that lorry and delivery drivers are being caught inside of IR35 rules is growing, according to outsourced payroll specialists HIVE360.
“Since IR35 rules changed, drivers working in the transport and logistics sectors and the organisations hiring them, have to determine their employment status,” says David McCormack, CEO of HIVE360, which works with businesses and recruiters in the logistics and transport sectors. “Almost 12 months on, and its clear many are still very confused by the rules.”
“Many classifications of drivers are in fact caught ‘inside of IR35’ and have to pay PAYE.
“Last year, HMRC confirmed its opinion on the status of drivers applies to all transport providers and commercial vehicles. This means it is not only hauliers and lorries, but also drivers of commercial vehicles carrying goods, passengers, or livestock, those providing only labour, and those driving vehicles owned, maintained, and insured by contractors, are likely to be classified as an employee and inside the IR35 rules. So, PAYE is due on their earnings and must be deducted before any payment is made to the driver.”
It is different for individuals classified by HMRC as an ‘owner-driver’, including those that own or lease the vehicle they supply: “HMRC states these drivers are more likely to be classified as self-employed for tax purposes, and outside of IR35 off payroll working rules.
“Even if they work mainly for one business, drivers providing the vehicle are likely to be self-employed.”
HIVE360 is helping firms identify if their drivers fall inside the rules: “We develop a PAYE payroll solution utilising our IR35 compliant service and expertise – and help businesses avoid the risks of a huge fine.”
HIVE360 provides HRMC compliant PAYE payroll services, with solutions designed to match the individual operations. It provides its innovative employment experience platform Engage as standard to businesses that outsource payroll and employment administration to the company. The app includes My Health, My Money, My Discounts and My Work features, which give users secure access to numerous services and information.
A GLAA (Gangmasters and Labour Abuse Authority) license holder, HIVE360 is championing a new model of employment administration, redefining payroll and pension administration processing, and making employee benefits and wellbeing support more accessible to a wider pool of workers.
For more information visit: www.hive360.com