From 6 April 2020 the off-payroll working rules are changing. Previously it was the person providing the services who determined their status for employment purposes for the work provided through their own personal service company (PSC). However from April the responsibility is shifting to the end user/agency for medium and large companies.
If you provide personal services to medium and large companies through a PSC these changes will affect you.
To ensure that you can continue to trade in your current structure you need to establish what the business’s you provide your services to intend to do from 6 April 2020. Many companies have made the decision not to use PSCs from this date as the commercial risk associated with determining someone’s status incorrectly are too high! Questions you need to think about include:
- Is there a blanket ban on the use of PSCs now by the company I am engaged with?
- Are they doing status determinations? If so what status have they decided applies to me
- Are they considering using umbrella companies to make their payments and how will this affect my taxable earnings?
If you think you will be affected by these changes please get in touch.
Tax Manager
Carlisle Office
