For some time now there has been a spotlight shone on IR35, which is the legislation that was initially introduced to consider the underlying nature of the working relationship between the contractor and the client. HMRC launched a consultation in May 2016 to consider the use and application of IR35 in the public sector.
This newsletter discusses the consultation in more detail however the headlines are that should this consultation take effect, individuals working in the public sector who are found to be inside IR35 will have to effectively pay the same level of tax and NIC as a permanent employee.
The Government also announced that from April 2017, the responsibility for ensuring an individual falls outside IR35 when working in the public sector will shift from the individual's PSC to the public sector body, the agency, or the third party paying the PSC, known as the 'Engager.' Therefore, it is more essential that ever for a contractor to be aware of their IR35 status.
The consultation ends on the 18th of August, but conversations will continue to run into September, so watch this space for more updates.
Over the past few months we have spent time pulling together the results from our latest limited company customer satisfaction survey and are again delighted to have received an excellent response. We are always seeking feedback from your contractors so we make sure our services are tailored around their needs and not ours. More details of our results can be seen in this month's newsletter.