IR35 public sector reforms take effect on 6th April.
The reforms will have a major impact on recruitment businesses that place limited company (PSC) contractors in public sector engagements, as well as public bodies themselves.
Although the legislation takes effect in a fortnight, there is still plenty of confusion within the staffing and contracting sector as to the practical effects.
To address this, we’ve produced a podcast that gives an overview of the changes and offers practical advice to agencies.
Featuring John Chaplin of EY as well as ADVANCE managing director Shaun Critchley, the podcast can be obtained by entering your details below.
Get the podcast:
The podcast includes detailed commentary on the IR35 public sector legislation, including:
- A summary of the legislation relating to IR35 and off-payroll working in the public sector
- What we learned from the publication of the final legislation in the Finance Bill 2017 (see below for a brief written summary)
- Which party in the supply chain is responsible for what
- What recruitment agencies will need to do when a PSC contractor’s assignment is captured by IR35
- Initial thoughts on HMRC’s new online Employment Status Service (ESS) tool
- What do we mean by the public sector? Does it include quangos, wholly-owned government companies etc?
- The future of contracting in the public sector
- Alternative contracting solutions – umbrella employment and self-employment
IR35 public sector legislation published – what’s new?
The Finance Bill 2017 was published on Monday, meaning the recruitment and contracting sector finally knows how the new off-payroll public sector rules will work when they become law on 6th April.
The most significant change from the draft legislation is the placing of greater pressure on public sector bodies to assess IR35 status and communicate their decision promptly.
If the public authority fails to provide the information in time or fails to take ‘reasonable care’ when making its decision, it is treated as the fee-payer and therefore must operate PAYE and NIC when IR35 applies.
We discuss all this and more in the podcast. Here again is the form you need to fill in if you’d like us to send you a link to the recording: