Farmers who make use of casual summer labour must ensure they adhere to new guidance from HMRC.
Accountancy firm Saffery Champness has urged farmers and landowners to take special care when paying temporary staff such as harvest casuals and beaters.
Updated HMRC guidance, published in May, states that deduction of tax may not need to be made for casual employees working outdoors if they are employed for two weeks or less.
However, their pay is still taxable income and employees must ensure that any tax due is paid.
Employers must also ensure that any casual staff are eligible to work in the UK and ensure that they are paid through PAYE.
In addition, any tax and National Insurance deductions must be made as normal if the employee works for the farmer for more than two weeks, they work on things other than harvesting or shoot beating and if they are a member of the employer’s family.
Farmers have also been urged to ensure that any casual members of staff are eligible to work in the UK.
Saffery Champness partner Susie Swift said: “There was previously a form P38 (s) available for students paid below the PAYE and NIC thresholds, but this form no longer exists and all reporting has to be done under the Real Time Information (RTI) structure.
“There are exemptions under the rules for deducting tax for harvest casuals and casual beaters in certain circumstances. However the employer must keep a record of each person paid including full name, date of birth, gender, NI number, address and the amount paid and this should be reported to HMRC either on or before the employee’s first payday or within seven days of paying them.
“Many employers will still be getting to grips with the aspects of RTI that relate to casual summer employment although should be well versed with it for their regular staff. They should be aware of the new guidance and, if in any doubt, should discuss with their professional adviser.”