The off-payroll rules target individuals providing their services to organisations through a personal service company (PSC). If the individual would have been an employee were it not for the presence of the PSC, the individual is taxed as an employee. The effect is that PAYE and national insurance contributions (NICs) have to be applied to payments to the PSC.

When in April 2017, the government introduced the off-payroll rules for PSCs providing services to public sector clients, it seemed likely that it would not be long before they were extended to the private sector - barring any unexpected difficulties with the operation of the public sector rules.