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.

Fibbing or following policy? One unsure MoD contractor gets help on his agency’s claims.

'One legislative chapter or another,' is the closest to the formula which a PSC seeks.

Off-payroll rules expert helps a contractor wanting to set his agency straight.

Accounting boss tries to help a contractor, without using numbers.

Twenty things PSCs can do at work to stop IR35 from getting a look-in.

How paperwork and practices can help you keep IR35 at bay.

Why merely understanding IR35 is no longer enough, even if you succumb to it.

Find out who carries the can when HMRC deems a non-caught public post to be caught.

IR35 expert gives the health service's current status on limited company workers.

Expert gives a refresher on the IR35 state of play, including April's game-changer.

What you need to know about the grassroots bid to take on the off-payroll rules.

Accounting aid for a NHS trust contractor losing trust in his recruiter.

Nearly two months in, it's clear contractors can't beat this new IR35 alone -- Harvey Nash.

No link between getting more out of your public client and getting interest from HMRC.

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.

Public Sector News

The press pack’s reporting of the Glenister case is wrong, unhelpful and dangerous.

Chancellor tipped to go big on November 22nd, making IR35 reform a firmer prospect.

There's a three-fold story unfolding, and part of it features a 30% rate increase.

Top taxman goes on the offensive over the off-payroll rules, but he's on the backfoot -- again.

Contractor sector is pressing the taxman over his minute-taking at the IR35 Forum.

Tweak to who's caught, coincides with fresh Forum minutes and 'ESS' becoming 'CEST.'

Bedding in, not rolling out, is what HMRC’s latest IR35 language speaks to.

Only a matter of time until the off-payroll rules are rolled out to cover all PSCs.

HMRC's denials of change might still not convince non-rocket scientist contractors.

Campaigner concedes that the courts might not be how IR35 gets changed.

Record low in optimism blamed on Brexit, the off-payroll rules and the rules’ feared extension.

Taxman not denying using private firms to get around rules he made for public bodies.

Adviser to contractors factors in 16.5% on VAT, plus the loss of the 5% rule.

Get to grips with your brolly's deductions and fees so you're covered, not cross.

Agencies telling a 'familiar story' -- IR35 issues dragging their public sector results.

New guidelines go live, for those accused of re-running the ESS until it says 'outside.'

Contractor hoping to take on the off-payroll rules raises over £11,000 in just three weeks.

'Outrageous' ploy, as agencies covertly force PSCs to indemnify them against IR35 losses.

Where the off-payroll rules should be fought, and why, to be itemised and assessed.

Plus, the six other areas you need to know about if you're a contractor now, and over the next two years.

'Recruiters are wrong to deduct student loan repayments from IR35-caught 'Ltd' contractors.'

Cash pledges wanted, to help take the taxman’s 'iniquitous' off-payroll rules to court.

Health officials admit their stance on the off-payroll rules was 'not accurate.'

Significant number of contractors have 'thrown in the towel' since April 6th.

Unhappy anniversary: the woeful way April's off-payroll rules are playing out.

Almost a fifth of clients are stumping up incentives to make ex-PSCs stay on.

Tiny traders overwhelmingly plan to keep at it, despite economic worries.

Despite public sector 'chaos,' the track operator signals faith in its off-payroll staff's status.

Contractor sector in 'great danger' of off-payroll problems becoming permanent.

How limiting your income can be more financially rewarding than it sounds.

A common status scenario we've seen since April 6th, and what to do about it.

Agencies worrying; clients double-checking, PSCs refusing and the ESS changing.

'Be ready for HMRC’s challenge if your outside IR35 result hinges on ESS question five.'

Separating fact from fiction about what's now here -- IR35 reform in the public sector.

Revenue recommits to the results of the ESS, following claims they are in doubt.

PSCs behind the ESS quit over IR35 fears, sign-posting a 'bumpy road' for the Revenue.

Two steps to take before Thursday if you've already been deemed inside IR35.

Off-payroll angst hits fever pitch on the health service, as compulsion replaces choice.

Recruiters ask MPs if next week's IR35 reform is a baby too big for its pram.

Eight areas where the ESS falls down and needs fixing.

A real disruptor for their organisation is just a fortnight away, say nine in 10 officers.

April showers on PSCs make payroll firms' pensions a tax shelter worth exploring.

Final set of April 6th rules outlaws clients from making blanket IR35 assessments.

Will April's IR35 legislation leave more PSCs in its wake than last April's T&S rules?

Convert to a brolly and so pay more tax than inside IR35, or be gone, PSCs told.

Almost all contractors fear walking out before April will hurt taxpayer-funded bodies.

Get tailored help on the off-payroll rules, to work out what 23 days’ time means for you.

Budget 2017 fears compel the first commercial outfit to begin banishing 'Ltd' workers.

'Courts have already ruled against the flawed approach that HMRC is still evolving.'

Another expert says PSCs with commercial clients could be brought into scope on Wednesday.

Contractors should look (at these figures) before they leap into an umbrella company before April 6th.

Check your status for tax, invites HMRC, opening the ESS -- in all but name.

Fee-payers must decide PSCs’ status before using the later than promised ESS.

Local government leaders team up to push IR35 reforms back until October.

Cautious chancellor unlikely to move off-payroll rule liability, but a 'duty of care' is feasible.

Off-payroll techies at Guy's & St Thomas' say a £16.5m project will grind to a halt when they quit.

Latest stance on the off-payroll rules is released, just as the tool to bed them in isn't.

PSCs and their agents will find a new 'cornerstone' just as pointed as umbrellas.

1,700 'Ltd' workers to leave the government sector within the next seven weeks.

New series on what agencies make of public sector IR35 reform starts with this Q&A.

How the public sector might look to IT contractors in a few months' time.

Off-payroll rules seen as a springboard for HMRC to investigate contracts before April.

'Aggressive tree-shaking' exercise at DE&S, as PSCs are told to comply (somehow) or get out.

Personal service companies facing April’s IR35 changes are among those handed an official guide.

What we should've said about where we are now on appealing IR35 from April.

More than 16,000 people are objecting to the IR35 changes in the public sector.

City transport body bars 'Ltd' workers, as it moves to 'do its duty' and protect itself.

Many health service IT contractors tipped to turn to umbrellas before April.

Draft IR35 legislation puts the new liability on end-users, not agencies.

Treasury says Budget 2016's rewrite of IR35 for the public sector will go ahead.