HMRC has updated its guidance on when off-payroll working rules apply to a worker providing services through an intermediary and when one needs to check.
A worker is involved in off-payroll working when they work for a client through their own intermediary, often a personal service company (PSC), but would be an employee if they were providing their services directly.
As off-payroll workers are paid through their own intermediary, they pay income tax and NIC in a different way from an employee.
The off-payroll working rules are in place to make sure that where an individual would have been an employee if they were providing their services directly, they pay broadly the same tax and NIC as an employee.
The off-payroll working rules need to be considered by those who:
The intermediary can be:
The guidance explains the different roles and responsibilities for applying off-payroll working rules depending on whether a worker provides their services in the public or private sectors
The change to the guidance is an explanation that off-payroll rules may apply if an agency, umbrella company or similar third party supplies a worker by engaging the worker's intermediary.
In what sense is this news? I thought this was already the case.