Off-payroll working: lessons from the BBC’s experience

From April 2020, private sector businesses engaging freelancers through personal service companies (PSCs) will become responsible for determining the tax status of the underlying individuals and if appropriate applying PAYE and paying employer’s NICs. The National Audit Office’s report into the BBC’s handling of the roll-out from April 2017 of similar rules in the public sector shows the difficulties of applying the rules and illustrates what can go wrong. For businesses engaging large numbers of freelancers engaged through PSCs, establishing systems to ensure compliance with the new rules will be a major exercise and planning needs to start now.