IR35 in the Public Sector

10th March 2017

HMRC: Finally release new Employment Status tool.

The new public sector IR35 assessment rules come into effect on 6 April 2017 and contractors have been concerned that they are unable to confirm their IR35 status. HMRC has now released its long awaited online Employment Status Tool. The tool is available to contractors, engagers and agencies and asks users to choose answers that best match the usual working practices for each engagement. The results are not submitted to HMRC, but users are able to print and keep them.

There are concerns that the release of the Employment Status tool has been rushed by HMRC and some decisions may turn out to be wrong. However, HMRC say they will stand by the results as long as the questions have been answered accurately. Under the draft legislation, contractors do not appear to have any rights to appeal the public sector bodies decision, so this tool should be useful for all parties to ensure the right IR35 status conclusion is reached.

The Press have already reported large numbers of public sector contractors moving into the private sector due to the uncertainty of the new IR35 rules. With the Spring Budget on Wednesday, we wait to see if these rules are to be extended to the private sector, to create a level playing field and stop this mass migration of workers.

Contact us if you require assistance in strengthening your contractual terms and actual work practices, to make sure you continue to fall outside of the IR35 legislation:

Blog entry by: Vanessa Pearson.

 



 
Other items in Blogs
 
James Cater
28th June 2018 Understanding Tax Relief Restrictions

Although we hear of decline in the value of development land, particularly for larger developments, growing houses continues to be more attractive to many than growing crops. Onerous Section 102 levies may apply but the tax regime remains gentle. It should not however be assumed that tax reliefs will be available automatically. Legislation imposes qualifying…

Read More »

Vanessa Pearson
28th June 2018 Career Change? Think Contracting.

There are many benefits over employment, writes Whiting & Partners Contract Specialist, Vanessa Pearson   Changing careers can be a challenge but leaving the employment wage treadmill to become a contractor can increase your earnings, saving on tax and national insurance as well as providing more flexible working hours. Contractors are essentially self-employed individuals who…

Read More »

Daniel Coleman
28th June 2018 Making Tax Digital – Moving Your Company Forward

You, like many businesses have been successfully running for years, maintaining your books and records and submitting correct VAT returns, in turn ticking all the necessary boxes and satisfying HMRC. However, the introduction of MTD will mean a ‘shake up’ to your current methods and may require you to adopt software for the first time.…

Read More »

Philip Peters
28th June 2018 Trading Allowances Change

Do you remember when eBay first emerged and become a revolutionary trading platform for buying or selling and, yes, turning a profit? As social-media has expanded, so have trading websites to the extent that there’s hardly a town, village or group that does not have a ‘buy’n sell’ page.   HM Revenue & Customs have…

Read More »

Jaimie Lane
27th June 2018 Charity annual returns – changes ahead

Later this year The Charity Commission will introduce a tailored annual return which will include some new questions which may require preparation in advance. Overseas expenditure As these new questions will likely require additional preparation, they will be optional for 2018 but become mandatory for 2019 onwards: When spending money outside England and Wales, did…

Read More »

Vanessa Pearson
18th June 2018 Public Sector contractor wins IR35 case

HMRC have lost a second IR35 case this year, and their second case against the same contractor, putting into doubt their own understanding of the IR35 rules. Ian Wells, director of personal service company Jensal Software Limited provided his services to the Department of Work and Pensions via a recruitment agency during 2012 and 2013.…

Read More »