Following the changes to intermediaries legislation known as IR35, public sector authority engaging a worker through a Personal Service Companies (PSC) is to determine whether IR35 rules apply. Where it applies, the worker’s income from contract will be taxed as employment income. This will be deducted from their income and paid over to HMRC. This applies to payments made on or after 6th April 2017.

IR35 is the UK anti avoidance tax legislation designed to tax “off payroll workers” in the same way as an employee.