If you currently provide services to a client via a company or partnership you need to be aware of changes taking place from April 2021.
From 6 April 2021, all public sector clients and medium or large-sized private sector clients will be responsible for deciding your employment status. Prior to this only the Private sector was included.
“Medium and Large sized” will be determined by the following. If you are unsure you are legally allowed to approach them to ask if they meet these conditions-
- a turnover of more than £10.2m;
- a balance sheet total of more than £5.1m;
- 50 employees or more.
If you are currently engaged with a customer that falls within the above criteria they should have reviewed your contract and assessed if it falls within the new off-payroll working rules by completing and providing you with a “Status Determination Statement”.
If they have deemed that you are outside of off-payroll working then you can continue to trade as normal.
If they have deemed you are inside of off-payroll working then you need to let your Accountant know as soon as possible.
If you only provide services via a company or partnership to small private sector clients (i.e., they do not meet the criteria above) then you remain responsible for assessing if you fall within the off-payroll working rules. Please complete the attached questionnaire for any appointments undertaken and provide your accountant with the result.