Off-Payroll Working - New Tax Rules

On 18 May 2018, the government published a consultation paper on off-payroll working in the private sector. This follows last year's reforms to the off-payroll tax rules in the public sector - which the government thinks are working well. The consultation paper could lead to the extension of the rules to the private sector and so it makes sense to understand how the public sector rules currently operate. This briefing seeks to do that. When we know the outcome of the present consultation, we will publish an updated note.

Background

Legislation was introduced in 2000 attacking arrangements for individuals to claim the tax advantages of self-employment by providing their services through a personal service company - a PSC.