An LP10 Letter is an instruction by HMRC that allows a company to pay a short-term worker with no tax deductions. They are also known as a Lorimer Letter.
An LP10 Letter, also known as a Lorimer Letter, is a note sent by HMRC that instructs the hiring company to pay the short-term worker with no Income Tax or National Insurance contributions deducted. LP10 Letters allow freelancers who work 10 days or less to be paid like Sole Traders rather than be paid PAYE.
To apply for one, you must fill in a PSC questionnaire and engagement history form. You must be able to show HMRC 12 months of employment history containing lots of examples of short-term jobs. HMRC would normally also require proof of a business structure used where there is some financial risk or provision of substantial equipment.
They are valid for 3 years.
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