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Off-payroll describes payments that are for work but are made through ways other than a salary. For example, Self-employed people count as Off-payroll

More detail:

Off-payroll is a term used to describe payments for work that are different from a salary. For example, Self-employed individuals are classed as Off-payroll as they are paid with an Invoice.

There are rules such as IR35 that allows HMRC to crackdown on Off-payroll workers that should be classified as Employees. Workers choose to disguise their employment status as Self-Employed individuals pay less National Insurance contributions than Employees. Employers also benefit from disguised employees as they have to contribute less National Insurance as well.

IR35 requires any individual who is an Off-payroll worker that is treated like an Employee to be added to the Payroll. Then, Employees have their Income Tax and National Insurance contributions automatically removed through PAYE.

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