Print

As part of the package of measures aimed to help people as a result of COVID-19, HM Treasury have said they intend to postpone the introduction of the Off-Payroll Working rules to the private sector.

Extension of Off-Payroll Working: deferred

Off-payrolled public sector workers: furloughing

It initially appeared unlikely that contractors who work for the public sector would would not need to be furloughed, under the COVID-19 Employee Job Retention Scheme as their work is on-going.

In March 2020 the Cabinet Office released a paper setting out the circumstances under which certain public sector contractors, 'contingent workers' may be eligible to be laid off and paid under the scheme:

IR35 workers: Furloughing

See COVID-19 Employee Job Retention Scheme 

See COVID-19: Company directors & shareholders

IR35: Off-Payroll Working & SSP

See COVID-19: Company directors & shareholders

Links to our subscriber guides

COVID-19: Government support tracker

Personal Service Companies (PSC) tax
A Personal Service Company (PSC) derives its income from the activities of one individual. It is also a close company for tax purposes.

Off-Payroll Working: PSCs & Private Sector Engagers
The Off-Payroll Working rules only apply in cases where, if you worked directly for the end client you would be deemed to be its employee in terms of the employment status tests.

Employment status
The employment status of an individual worker depends on whether the individual is engaged by the engager under a 'contract of service', or a 'contract for services'.

External link

Hansard 17 March 2020