From April 2020 companies will need to assess whether individuals are ‘deemed employees’. If they are they will be subject to PAYE and NIC withholding, as employees are.
The good news is, this does not apply to small businesses.
The bad news; if you are a contractor for a large company, you will be assessed as a deemed employee. The best way to mitigate the effects of this is to become an employee of your own limited company, running a payroll through your company and taking a directors salary, rather than just dividends.
Contact us, to discuss further if you think it will affect you or if you would like advice and help with how to set up a limited company and payroll
Morgan Barrett Accountancy 