As highlighted last year, from April next year there is likely to be a material change in the compliance burden for those organisations dealing with contractors engaged via their own personal service companies. Specifically, responsibility for deducting income tax and NICs due on payments relating to those personal service companies (PSCs), will in many cases shift from the PSC to the company paying the PSC.

HMRC has issued a consultation that sheds more light on these changes. These proposals would significantly change the landscape in which PSCs and end clients currently operate. Companies should be preparing and considering these changes, both from a business perspective as well as a simple compliance perspective.