Important changes to the off-payroll working rules

 

If you need to apply the off-payroll working rules, there is an important update regarding the company size thresholds that you should be aware of.

From 6 April 2025, the thresholds used to determine whether a company is classified as ‘small’ will change. For accounting periods starting on or after this date, a private company or organisation will be considered small if it meets at least two of the following three criteria:

• Turnover of no more than £15 million (up from £10.2 million)

• Balance sheet total of no more than £7.5 million (up from £5.1 million)

• An average monthly number of employees not exceeding 50 (unchanged)

These criteria are outlined in section 382 of the Companies Act 2006.

Under the off-payroll working rules, it is the responsibility of medium and large companies to determine the employment status of any worker providing services through an intermediary, such as a personal service company.

Although the thresholds change in April 2025, they will not affect company size assessments for off-payroll working purposes until at least 6 April 2027, as company size is based on financial data from previous accounting periods.

If you would like a review of your current situation regarding your self-employed operatives, please contact us on 0800 131 0131 or email sales@rollpay.co.uk.