Cost-efficiency in the private sector is often achieved by delivering services through a series of interlinked entities – arrangements that keep businesses lean but may leave them negatively exposed to changes in off-payroll working tax rules.

From April 2020, the requirement to ensure working practices are compliant with IR35, also known as the off-payroll working rules, is shifting from individual workers to end users of their services in the UK private sector. This will affect businesses who use consultants or contractors operating through intermediaries, such as personal services companies (PSCs).