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What do the public sector changes mean for contractors
What did IR35 have to do with the public sector changes?
IR35 was introduced in 2000 to determine whether or not a contractor should be treated any differently than an employee, for tax and National Insurance purposes. The government announced that from the 6th April 2017, the way in which IR35 is administered for Personal Service Companies operating in the public sector was changing. The responsibility for determining a contractors IR35 status used to rest with the contractor but from the 6th April it moved to the company paying the PSC, whether it is the recruitment agency, public sector body or someone else.
So let’s take a look at what IR35 is, what these public sector changes are and what they mean for contractors and their agencies.