Farmers caught out in harvest casuals scheme

By FWi staff

FARM employers are being caught out by the rules of the daily harvest casual workers scheme, whereby casuals may work and be paid on a daily basis without entering the PAYE system.

Under this scheme, there must be no guarantee of work the next day, and employees can only work for a total of 10 days per tax year before PAYE is payable.

Accountant Peter Homent of Hardcastle Burton knows of three farmers who have recently been caught out under the scheme, and warns that the penalties are severe.

“A 300 weekly payment could be turned into the best part of 500 once tax and National Insurance has been added.”