New off-payroll working tax rules are soon to come into effect for individuals who provide their personal services via an ‘intermediary’ to a medium or large business. The rules apply to payments made for services provided on or after 6 April 2021.
The new off-payroll working rules apply where an individual (the worker) provides their services through an intermediary (typically a personal service company) to another person or entity (the client). The client will be required to make a determination of a worker’s status and communicate that determination. In addition, the fee-payer (usually the organisation paying the worker’s personal service company) will need to make deductions for income tax and NICs and pay any employer NICs.
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