From the 06 April 2020 there will be some important changes to employment taxes.
Those who will be affected are:
• Contractors – working through an intermediary, eg. Your own limited company (often known as personal service company (PSC)
• Those who provide services to public sector organisations or medium or large sized organisations (Turnover of more than £10.2m, a balance sheet of £5.1m and/or more than 50 employees)
Any medium and large sized organisation outside the public sector will, from April 06, be responsible for deciding the employment status of contractors for tax purposes. Currently contractors are responsible for making these decisions.
These changes may affect how tax and national insurance contributions are paid. If you are affected, the organisation you are providing services for will determine your employment status. The organisation should be giving contractors a ‘Status Determination Statement’ and information may be required to determine your employment status.
If you think you may be affected you should seek a Status Determination Statement from the organisation you are providing services for.
You can find further guidance at www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-intermediaries
You may also find it helpful to Check Employment Status for Tax (CEST) tool: www.gov.uk/guidance/check-employment-status-for-tax
