Off-payrollworkingandPersonalServiceCompanies

Where an individual provides services to a client through their own limited company, often called a personal service company, specific rules determine whether that engagement should be taxed broadly as employment or as genuine self-employment. This depends on the real nature of the working relationship, not simply what the contract says.

Responsibility for making this determination, and the tax consequences of getting it wrong, can fall on the contractor, an agency, or the end client depending on the circumstances. Given the financial risk involved, both contractors and businesses engaging them should have contracts and working practices properly reviewed.