Off-payroll worker tool

Over the last couple of years, there has been much speculation about how the tax rules dealing with self-employed individuals will change. The public sector has already faced big changes when engaging individuals providing their services through their own personal service companies, having to dramatically change the way they operate.

As anticipated, the crackdown within the public sector regarding the use of personal service is to be widened to the private sector. This will take effect from April 2020, with small companies being exempt.

From April 2020, when your organisation hires consultants, contractors or freelancers via personal service companies, you may be responsible for deducting tax at source (e.g. PAYE) from the payments to that personal service company, even though the individual doing the work is not your employee

Many questions arise for an organisation:

  • What are the off-payroll working rules?
  • Which businesses need to comply with the rules?
  • How do you determine whether an individual should be treated as an off-payroll worker?
  • What changes need to be made to our internal procedures, record keeping, and reporting to HM Revenue & Customs?

Moore Kingston Smith off-payroll worker tool

Our tool has been designed to provide guidance to help your organisation start the process of understanding the rules, whether they may apply to your organisation and the steps your organisation should consider to comply with the changes and minimise risk.


Please note: The off–payroll worker tool is for guidance only, and should not be considered advice.  There are many factors to consider when applying these rules and if you require specific advice on the rules and whether they apply to you, please contact us regarding the Moore Kingston Smith off-payroll workers solution.