Changes to company size thresholds for off-payroll working
Where an engager or business needs to consider the off-payroll working (OPW) rules there is an important change relating to company size thresholds.
From 6th April 2025, the government thresholds that determine if a company is classified as ‘small’ change.
This means that for accounting periods beginning on or after this date a private company or organisation will now be considered small if two out of the three following conditions are met:
- turnover of not more than £15 million — increased from £10.2 million
- balance sheet total of not more than £7.5 million — increased from £5.1 million
- monthly average number of employees of not more than 50 — no change
A large or medium-sized client is responsible for determining the employment status of any worker supplying their services through an intermediary — usually a personal service company (PSC).
The threshold changes is stated to have no practical impact for OPW until 6th April 2026, at the earliest, because a company’s size is determined by reference to previous years.
PAYadvice.UK 2/4/2025