From 6 April 2021, organisations that engage contractors through personal service companies or other intermediaries, such as partnerships or limited liability partnerships, will need to assess whether the rules apply to contracts they enter into.

The rules will affect medium and large-sized organisations, third parties or intermediaries, and contractors operating in the private sector. Small organisations are exempt.

Employers and other organisations that use private-sector contractors and other forms of contingent labour will have to assume responsibility for determining employment status from next month. They will be responsible for deducting tax and NICs before paying contractors.

There are some key employment indicators which should be considered in determining status. Read our article here to find out what these are.