The effect of the proposed changes could mean that an individual working through a personal service company will have to be remunerated through PAYE after only one month of working for a single employer. This is going to have far-reaching tax implications and completely change the way individuals work.

It is estimated that the proposed change will effect 90% of individuals working through personal service companies. The effect is going to mean that employers will need to pay income tax and National Insurance contributions.

It is currently suggested that HMRC will generate a further £400 million if this change is implemented.