Contractors who work through personal service companies and contract to private sector businesses will see their contracts brought under tighter scrutiny from April 2020.
It will be the role of the private company to decide if the contractor is working under a contract and has the working practices which would indicate them to be working as an employee. If the contractor fails the tests they will pay tax and NIC as if they are an employee.
The tests which define a self-employed individual from an employed individual are complex and will not be within the sphere of tax knowledge of HR departments. The result will be incorrect decisions being taken affecting the invoice amounts paid to legitimate contractors