What changed in the off-payroll rules for 2026/27
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The regime itself (client-led Chapter 10) is stable. What moved is the size test that decides which clients are subject to it.
The April 2025 threshold change
From financial years beginning on or after 6 April 2025, the small-company thresholds rose: turnover £10.2m → £15m, balance sheet £5.1m → £7.5m, employees unchanged at 50 (two-of-three still required). HMRC estimated ~14,000 businesses affected.
Why the effect lands gradually (2026–2028)
The test looks at the previous financial year, and size status needs two consecutive years. So a client crossing below the line in FY2025/26 becomes small for off-payroll purposes only from 6 April 2027 at the earliest (later for non-April year-ends). Through 2026/27 many former "medium" clients are still in Chapter 10 scope on last year's figures.
What it means for you
More small-client engagements will revert to Chapter 8 self-assessment — which is good news only if your working practice is genuinely outside. Run the evidence checklist harder than ever, because the liability just moved back to your side of the table.
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