Avoid issues with HMRC by ensuring that your workers are correctly set up with regard to IR35 rules.
📌 Note: IR35 refers to off-payroll working rules.
You have paid a worker as inside IR35 and they should not have been
Hold any unprocessed timesheets so that they are not included in this process.
Whilst the worker is still on the IR35 assignment, use adjustment timesheet entry to reverse the previously paid timesheets to set them to zero.
Main Calc the worker to reduce the Taxable/NI pay to zero and provide refunds.
Then move the worker on to the non IR35 assignment.
Enter the timesheets back in under this new assignment, holding from both payroll and invoicing if these do not need to change at all.
You have paid a worker as non IR35 and they should have been
Hold any unprocessed timesheets so that they are not included in this process.
Whilst the worker is still on the non IR35 assignment, use adjustment timesheet entry to reverse the previously paid timesheets to set them to zero.
Main Calc the worker to reduce the Taxable/NI pay to zero and provide refunds.
Add the worker on to the IR35 assignment.
Enter the timesheets back in under this new assignment, holding from both payroll and invoicing if these do not need to change at all.