Thursday 23 January 2020

Latest Developments Affecting Personal Service Companies (PSCs)

There is a huge amount of disinformation being spread by people who are trying to 'drum up business' in this area of H.R./taxation, but who don't really understand the forthcoming changes (the same sort of people who were masquerading as 'GDPR Consultants' a year or so ago). 

In summary - In July 2019, H. M. Government published draft legislation implementing the Autumn 2018 Budget announcement that, with effect from April 2020, medium and large companies in the private sector that contract with personal service companies (PSCs) for the provision of workers' services will have to account for tax and national insurance through PAYE in the same way as the public sector has been required to do since April 2017 ("Off-Payroll Working Rules").

Consequently, 'IR35' (an informal shorthand for a historic [2000] HMRC press release) WILL NO LONGER APPLY to such contracts, as the OFF-PAYROLL WORKING RULES will apply instead.

It is important to understand the interplay between the two sets of rules, and not use (or listen to those - who use) 'IR35' as an erroneous shorthand for issues arising under the separate Off-Payroll Working Rules.

I suggest that to begin to understand the forthcoming changes - Please adjust your web-search term(s) on Google etc.!

Should you need further legal advice or assistance - Please do not hesitate to make contact.

Regards

Dan.Johnson@EquitableLaw.com - Principal & Business Law Solicitor

+44 (0) 7788 537 187 : U.K. Cellular (& e-Telephone)

www.EquitableLaw.London - Solicitors For Business