Personal Service Companies, Off-Payroll Working: The Risks and Rules
A look at some areas of current relevance to those working through an intermediary, such as a personal service company (PSC).
The off-payroll working (OPW) and IR35 rules are tax avoidance measures, designed to prevent those working through what are called intermediaries from paying significantly less tax and National Insurance than employees. They hinge on the question of employment status for tax purposes.
The rules apply if a worker providing services to a client through an intermediary would fall to be treated as an employee if they were providing their services directly to that client. A PSC is the most common type of intermediary, though individuals, partnerships and unincorporated associations can also act as intermediaries.
