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
 
Hannah Wisbey
17th October 2017 Actors: IR35 tax rules will probably apply.

  In a recent tax tribunal test case, relating to the well-known actor Robert Glenister, HMRC were challenged as to whether the IR35 intermediary tax rules should apply to an actor earning his living through a personal service company.   As is typical with individuals providing their personal services through an intermediary company, Mr Glenister…

Read More »

Donna Gidney
17th October 2017 Start-Ups: Choosing a Business Name

  What’s in a Name? Having decided to start out in business, you will need to choose an operating name.  This is an important decision as it is the first thing that customers notice about you.   There are several factors to consider, including:   Relevance & Personalisation You may want to refer to your…

Read More »

Neil Groom
12th October 2017 Trust Registration Service

  HMRC has released guidance for trustees and their agents for the new online Trust Registration Service (TRS) which has been operating since the middle of July. The new service replaces the old form 41G, as well as a section of the trust tax return used to report changes in trustee contact details.   Trusts…

Read More »

Mark Burrows
11th October 2017 Making Tax Digital – will free software be available?

  When Making Tax Digital (MTD) was first announced, HM Revenue & Customs said that free software would be available for the most straightforward small businesses.  Under MTD records of business income and expenses will be required to be kept digitally using a software product or app.   HMRC have since provided clarification on which…

Read More »

Thomas Carter
11th October 2017 Xerocon London 2017

Two fantastic days at Xerocon London on 4th and 5th October as 2000 attendees from 24 countries descended on the ExCel, the annual event for Xero Partners. Over the two days, four of our staff: Tom Carter, Dan Coleman, Steph Tinkler and Chip Moore attended the event. It was an opportunity to learn about new…

Read More »

Philip Peters
5th October 2017 HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

Read More »