Sarah Bradford explores whether, in the light of the extended off-payroll working rules, it is still worthwhile operating through a personal service company.
The off-payroll working rules were extended from 6 April 2021 and now need to be considered where a worker provides his or her services through an intermediary, such as a personal service company, to an end client that is a medium or large private sector organisation.
As a result of the extension of the rules, workers may wish to consider whether it remains beneficial to operate through a personal service company or whether it would be better to work ‘on payroll’ rather than ‘off-payroll’. The decision will depend on the nature of the engagement and that of the end client.
Off-payroll working rules apply
The off-payroll working rules now need to be considered where
