Published: 21 September 2020
ESM10004A – Basic principles: off-payroll working: from 6 April 2021: Construction Industry Scheme and off-payroll working
Where payments are subject to PAYE under Chapter 10 (tax) / Part 2 (NICs) you do not need to consider the Construction Industry Scheme (CIS). If the off-payroll working rules do not apply, the party receiving the worker’s services must then consider whether tax needs to be withheld on payments under the CIS rules. If the party receiving the worker’s services is small under the off-payroll working rules, then the worker’s intermediary would be responsible for determining whether the off-payroll working rules apply. Where Chapter 10, Part 2 ITEPA 2003 does not apply because the client is a small non-public sector organisation, the client will still be required to consider whether tax needs to be withheld on payments to the worker’s intermediary under the CIS rules.
https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm10004a