Skip to content Skip to footer

Upcoming Changes to Off-Payroll Working in the Private Sector- Get Prepared and Move Your PSCs to an Umbrella Now

We now know that from April 2020, businesses in the private sector who engage PSCs will be responsible for determining whether the IR35 rules apply. To negate the risk of making an incorrect decision, many business are expected to only accept contractors who are paid through a PAYE payroll.

With clients demanding PAYE contractors, this leaves recruitment agencies with two options – run your own payroll in house, or refer your PSCs to an umbrella company. Let’s consider the options:

Which is the most cost efficient?

By outsourcing your contractor payroll to an umbrella you will save on staff costs, software subscription, and other costs associated with running a payroll.

Which is the least time consuming?

By running your payroll in house, regardless of what you say at the outset you will end up dealing with payroll issues when your time would be better spent elsewhere.

Which presents less risk?

By running your payroll in house, all of the risk rests with you. By having an umbrella payroll your contractors, they will have knowledge of the legislation affecting the placement and reduce risk as far as possible.  

Which takes the least research?

Before you can run a payroll in house you’ll need staff to run the payroll, and potentially create a new department in your business. You don’t need to do any research to choose an umbrella, you can choose Galaxy Pay.

In every category, referring your PSCs to an umbrella company comes out on top. Why not speak to Galaxy Pay using any of the methods on our “Contact Us” page to find out how to get started.