Off-Payroll Working Guide
The Coronavirus pandemic has caused huge disruption to businesses in the last twelve months. For individuals providing services through their own company, there is more upheaval coming on 6 April 2021, when the ‘off-payroll’ working rules (which currently only affect public sector work) are being extended to include a lot of private sector clients too. Which private sector clients are affected depends on their size, as discussed later.
These changes are a further attempt to extend the reach of payroll taxes (PAYE, employer and employee National Insurance Contributions (NIC)) to those contracting with clients via their ‘personal service company’ (PSC). Note that the rules can apply
• even if an agency is the fee-payer rather than the end-client; and
• if the worker uses a different form of intermediary vehicle than a PSC (e.g. a partnership) to contract for their services. In this booklet, we will only consider the impact on PSCs.
We will explain
• the background to the changes;
• how work for different clients may be treated differently for tax purposes;
• some of the new compliance procedures coming in from 6 April 2021; and
• how the new rules impact on extracting profits from your company.
You can download the full guide here.
We are here to help if you need any further information on the matters discussed below.