From 6 April 2017, changes have been introduced for individuals that provide their services to clients in the public sector via an intermediary, such as a personal service company (PSC). The changes implemented transferred responsibility for paying any relevant tax/NI from the PSC to the client. This has meant that any public sector organisation who contracts with individuals who provide their services via a PSC, has to ascertain the employment status of the worker. This has led many to remove the risk of error and place a blanket ban on paying PSCs. An umbrella is a cost-effective solution to the situation as the PSC can remain dormant whilst the contractor works through the umbrella for their government contract assignments.
