In light of the current business uncertainty surrounding the Coronavirus pandemic, the Government have decided to delay the introduction of the off payroll working rules which were due to be introduced from 6 April 2020. The legislation is now expected to take effect from 6 April 2021.
This is a welcome move by the government not only for the individuals operating through personal service companies but also large and medium sized businesses given the administrative burden this will impose on them.
Once the change is implemented, they will be responsible for deciding whether the rules apply to workers supplying their services through personal service companies. If the new rules apply to the arrangements, then income tax and NIC will need to be deducted from payments to the personal service company.
