View Full Version : HMRC updates IR35 guidance

10th July 2017, 14:11
HMRC updates guidance (http://www.contractoruk.com/news/0013088hmrc_updates_ir35_guidance_contractors_publ ic_sector_clients.html)

A service provider to contractors says public authorities are already skewing the outcomes of the ESS (also known as the IR35 digital tool), by getting an ‘outside’ IR35 result, and then going off to fit such working practices around an engagement that previously was ‘inside.’

“If we had any faith in the results of some IR35 assessments being carried out by the public sector, [then that would be a good start],” the service provider’s boss said.

“We are seeing some perverse assessments and our conclusion is often the public sector body has had a 'second go' [with the ESS] and saved themselves 20-25% costs. I suspect they are counting on the usual lack of enforcement by HMRC.”

I'm highlighting this following agencies attempt to indemnify themselves against HMRC enforcement.

If HMRC does enforce this AND you have one of those dodgy contracts, you could be in hot water through no fault of your own (as it's the responsibility of the PSB to correctly assess contracts).

10th July 2017, 14:16
As I stated a long time ago - if you are taking an outside IR35 contract from a public sector organisation subject to the Public sector IR35 regulations I would insist on using one of the larger agencies...

These regulations are a 2 way street - if the organisation is found to be lying you want someone like S3 group on your side to prove you were not part of the fiction....

10th July 2017, 14:28
Conversely there are still problems where bodies are saying inside as a blanket decision when some roles are clearly outside. That last paragraph is going make it even harder to fix the problem because the body will now be afraid of falling foul of that as well as the initial determination. Pretty unhelpful for some situations. My old client has put quite a bit of work in to reworking the work engagments and WP to be outside so trying to so it properly. Wonder if that last paragraph is going to worry them.