ESM10011B | Basic principles: off-payroll working from 6 April 2021: suggested template when client confirms its size

This template can be used to respond to a request from a worker or party you contract with to confirm your size. You are required to respond to such a request within 45 days of receiving it (see ESM10011A).

For Small Organisations as defined by the off-payroll working rules

On [date request received] we received a request from you to confirm the size of our organisation for the purposes of the off-payroll working rules for the tax year [tax year]. In accordance with Section 60H of the Income Tax (Earning and Pensions) Act (ITEPA) 2003, we are required to provide you with a response to your request within 45 days.

I can confirm that [Organisation Name] is small for the tax year [tax year], as defined at Section 60A of ITEPA 2003 and the Companies Act 2006.

This means we are not required to provide you with a Status Determination Statement. A Status Determination Statement is what end-clients must issue to a worker if they determine that the off-payroll working rules apply to an engagement.

As we are small, your intermediary (usually your limited company) must consider if the off-payroll working rules apply. More details can be found here: https://www.gov.uk/topic/business-tax/ir35.

For Non-Small Organisations as defined by the off-payroll working rules

On [date request received] we received a request from you to confirm the size of our organisation for the purposes of the off-payroll working rules for the tax year [tax year]. In accordance with Section 60H of the Income Tax (Earning and Pensions) Act (ITEPA) 2003, we are required to provide you with a response to your request within 45 days.

I can confirm that [Organisation Name] is not small for the tax year [tax year], as defined at Section 60A of ITEPA 2003 and the Companies Act 2006.

As [Organisation Name] is not small for the purposes of the off-payroll working rules, we are required to determine whether the off-payroll rules apply to your engagement and therefore whether it should be treated as a “deemed employment” and PAYE applied to payments to your intermediary (usually your limited company).

As we are not small, we should provide you with a Status Determination Statement if the off-payroll working rules apply.