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Draft legislation has already been published and further HMRC guidance is expected. The new rules will affect you if you work via your own personal service company PSC , and off-payroll workers should be aware that their clients are likely to investigate the profile of the contractor workforce more closely than before, as part of a review of compliance, strategy and spend.

An intermediary can be an individual, a partnership, an unincorporated association or a company.

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The change could impact you if you supply personal services to large and medium organisations in the private and voluntary sector. Under the new rules, responsibility for making the decision as to whether IR35 rules apply passes to the business you contract for. The key question is whether, if your services were provided directly to that business, you would then be regarded as an employee.


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You may be used to this if you undertake contracts in the public sector, where similar provisions already exist. If you disagree, you can challenge the status determination with the business, and it should respond within 45 days, either withdrawing or upholding the decision, again supplying reasons.

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Significant tax implications arise. The potential tax advantages of working under such a contract, especially for PSCs, are much reduced. This is a good time to take stock of your options.

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