Changes to size thresholds for off-payroll working

The financial thresholds for determining the size of a company under the off-payroll working rules are set to increase from 1 April 2025 HMRC has confirmed to ICAEW. In line with the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 from that date a private company or organisation will be considered small if it meets two of the three following conditions:

• a turnover of not more than £15m (increased from £10.2m);
• a balance sheet total of not more than £7.5m (increased from £5.1m); and
• a monthly average number of employees of 50 (no change).

These changes will not have an impact until 1 April 2026 at the earliest as a company’s size is determined by its previous financial year end so existing medium and large sized clients will need to ensure they comply with the off-payroll working rules until they are no longer considered...