Public Sector Contracting
From April 6th 2017, IR35 status for Public Sector Contracting will be determined by the client, not the contractor.
As the clients or agencies will become liable if they make the wrong determination, it is thought that they are more likely to take a risk-averse approach and decide to apply IR35.
If the client does decide that IR35 applies, the contractor company will be taxed at source, exactly as if it were an employee.
Although contractors impacted by this measure may have to pay tax like an employee, their employment status will not change, so they will not receive the rights and benefits that go with employment.
The Employment Status Service (ESS) from HMRC is designed to test whether an engagement is inside or outside IR35, and it is thought that public sector organisations will use the results of the ESS to make an assessment of a contractor’s IR35 status.
For your information we have put together a comprehensive set of guides on Public Sector Contracting below and you can check back here for updates. You can also have a look at what the contractors and industry experts are saying about it in our Public Sector Contracting Forum.
Public sector IR35 changes -- quick overview
What the new off-payroll rules mean; when they apply and who's affected.
IR35 guidance set -- the four HMRC documents
At-a-glance: the guidelines that public PSCs, clients and fee-payers need to know about.
What to do if you're declared inside IR35 on April 6th
Five steps that contractors who want to fight will take if clients rule against them.
Status aid for a contractor stung by the NHS's ban on 'Ltds.'
'Take a position of strength but beware the bench, a brick wall and Catch 22.'
What today's new IR35 legislation means for you; at-a-glance and illustrated.
Long and short of it is that 'Ltd' looks best, as gains via a brolly are pretty marginal.
Double taxation worries a doubting PSC, keen to add what IR35 could subtract.
Compliance expert replies to a contractor hit by the health service’s 'inside IR35' ruling.
Post-April 6th and where IR35 applies to your public sector role, the winner is...
Status help for a PSC stuck on whether his client’s client makes the off-payroll rules apply.
What to do when you haven't rejected or accepted HMRC's 'inside' assessment.
Status expert helps a PSC stung by feeling his recruiter is work-shy.
No escape for a 'LLP' who only avoided 'Ltd' because of the compliance headache.
IR35-inspired pay guide, showing your take-home if you're caught, not caught or via a brolly.
IR35 expert demystifies what happens from April for a PSC working alongside consultancy staff.