The rules for individuals providing services to certain private sector organisations via an intermediary such as a personal service company (PSC) changed from 6 April 2021. The new rules mean that medium and large-sized clients are now responsible for deciding whether the intermediaries’ legislation applies to their workers. This includes charities and third sector organisations. The changes mainly apply to businesses with an annual turnover of more than £10.2 million.
HMRC has laid out some helpful best practice points to be aware of in complying with the rules:
- consider how the changes affect your organisation
- upskill those responsible for making decisions
- review current workforce
- talk to your contractors
- operate PAYE where appropriate
- use the RTI flag
- have a clear process in place for disagreements
- maintain an audit trail – this is a legal requirement
- utilise the resources and guidance available to you including HMRC’s off-payroll working guidance.
This is also relevant to agencies of any size who supply contractors that may be affected by these rules.
Source: HM Revenue & Customs Tue, 29 Jun 2021 00:00:00 +0100
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