Just published yesterday, due to come into effect next tax year - April 2020.
In the early days you’ll probably need a lawyer and an accountant to get through this!
Happy days.
gov.uk/government/publicati … april-2020
Click on the link then seek out the rules doc here.
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.
robbo99.:
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.
I thought there was something earlier in the HMRC pontification on this that subsidiaries might not be excluded? So as you quite rightly suggest if they follow that course of action they may have to think how they do that.
robbo99.:
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.
It isn’t the size of the agency that matters, it is the size of their client they send you to. From the second link in the OP:
Recruitment agencies
This measure affects approximately 20,000 agencies who provide workers to medium and large-sized organisations. They will need to operate payroll for any workers they supply who work through their own company and fall within the scope of the rules.
Conor:
robbo99.:
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.It isn’t the size of the agency that matters, it is the size of their client they send you to. From the second link in the OP:
Recruitment agencies
This measure affects approximately 20,000 agencies who provide workers to medium and large-sized organisations. They will need to operate payroll for any workers they supply who work through their own company and fall within the scope of the rules.
So as long as there is a clear definition as to what is a medium and what is a large organisation everything should be straight forward?
robbo99.:
Conor:
robbo99.:
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.It isn’t the size of the agency that matters, it is the size of their client they send you to. From the second link in the OP:
Recruitment agencies
This measure affects approximately 20,000 agencies who provide workers to medium and large-sized organisations. They will need to operate payroll for any workers they supply who work through their own company and fall within the scope of the rules.So as long as there is a clear definition as to what is a medium and what is a large organisation everything should be straight forward?
It’s HMRC so it will be anything but straight forward
Mazzer2:
robbo99.:
Conor:
robbo99.:
The crucial part of this legislation is that it only affects medium to large organisations, I can see lots of small agencies setting up to circumvent the rules, therefore continuing to use PSCs.It isn’t the size of the agency that matters, it is the size of their client they send you to. From the second link in the OP:
Recruitment agencies
This measure affects approximately 20,000 agencies who provide workers to medium and large-sized organisations. They will need to operate payroll for any workers they supply who work through their own company and fall within the scope of the rules.So as long as there is a clear definition as to what is a medium and what is a large organisation everything should be straight forward?
It’s HMRC so it will be anything but straight forward
Yeah there’s the right way, the wrong way and HMRC’s way, ie leave plenty of grey areas which can then be interpreted which ever way they like.