Where a contractor provides their services through a PSC, from 6 April 2021 it is the responsibility of all medium and large-sized private and voluntary sector organisations, and all public sector organisations, to assess the contractor’s employment status for tax purposes. 
HMRC issued a briefing policy paper on 15 February 2021 confirming that customers will not have to pay penalties for inaccuracies in the first 12 months relating to the off-payroll working rules, regardless of when the inaccuracies are identified, unless there’s evidence of deliberate non-compliance. This commitment has not changed. You can find policy paper here
HMRC have also committed that we will not use information acquired as a result of the changes to the off-payroll working rules to open a new compliance enquiry into returns for tax years before 2021 to 2022, unless there is reason to suspect fraud or criminal behavior. 
HMRC will not charge a penalty if you took reasonable care to apply the off-payroll working rules correctly but still made a mistake, including making mistakes in status determinations. 
The online Check Employment Status for Tax (CEST) tool helps you determine a worker’s employment status for tax and NICs purposes. HMRC will stand by the result produced by the tool, provided the information inputted is accurate and the tool is used in accordance with our published guidance. 
Small non-public sector organisations are not affected by the changes, and the contractor’s company or other intermediary remains responsible for determining if the off-payroll working rules apply and paying the relevant tax. 
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