A new report from the National Audit Office (NAO) warns that labour markets in the private and third sectors are larger, which makes monitoring non-compliance a bigger challenge. HMRC estimates that the 2021 extension of the reforms to the private sector will affect around 180,000 personal service companies (PSCs), almost four times the number affected by the 2017 reforms. This creates a bigger challenge for HMRC to identify and monitor risks of non-compliance.