IR35 when it is public sector

[BlueSharp]

Not done a public sector client yet so I assume this will be the same for all post April 2020. I have a possible opportunity where the end client is a public sector client.

My PSC >> Agent >> Consultancy >> Public Sector

The agent have told me that the contract is outside, anything I should be worried about beyond accepting that I get the full invoice amount? My understanding is my IR35 liability is zero as the end client is a public sector. Seems a little to good to be true with all the noise in the private sector.

[cojak]

The usual applies - get the contract checked out by QDOS/B&C.

[swamp]

The usual applies - get the contract checked out by QDOS/B&C.

Why?

[jamesbrown]

Why?

Contract reviews are just good practice although, for the OP, this would be for commercial terms; there wouldn't be a liability w/r to IR35 if the PS client has declared the contract outside (which is probably what you're alluding to).

[PCTNN]

Contract reviews are just good practice although, for the OP, this would be for commercial terms; there wouldn't be a liability w/r to IR35 if the PS client has declared the contract outside (which is probably what you're alluding to).

yes, that's my understanding as well. If the Public Sector client has deemed the role to be outside ir35, then you are OK

PS: does your accountancy package include free ir35 contract reviews? If so, might be worth taking advantage of that

[cojak]

yes, that's my understanding as well. If the Public Sector client has deemed the role to be outside ir35, then you are OK

Ah, I see your point.

*suck teeth at the implications for the IR35 insurance industry...*

[fidot]

Surely you need to get the client determination in writing rather than rely on the word of an agency

[BlueSharp]

Surely you need to get the client determinationinariting rather than rely on the word of an agency

This is what I'm trying to figure out. Can i turn around to Mr Tax man and say look the end client is public sector I don't care about the ir35 status go ask them? Why do i need a determination if there is no liability with my PSC? As long as i get the full invoiced amount, do i care?

When we talk about the three pillars of ir35 defence is having a public sector client as good a defence as having used a substitute? I will probably have a chat with the tax help line if i get the role and report back here.

[fidot]

I would still want the paperwork. What if client change their mind when HMRC ask a number of years later?

[cojak]

I would still want the paperwork. What if client change their mind when HMRC ask a number of years later?

That was my thought fidot.