April IR35 Changes. Now is the time for public sector contractors to act
Changes are coming to Public Sector contracting in April 2017.
The key area which could affect your company in April will be the following;
From 1st April this year many Limited Company Contractors working on a contract for a Public Sector institution will be classed as “Inside IR35” which means that the income from that contract will be taxed as if it was employment income. This can drastically increase the tax burden on the company.
A Public Sector organisation is any organisation that can be subject to a Freedom of Information Request including (but not limited to) the following;
- Government departments
- Executive agencies and non-departmental public bodies
- Police and fire authorities
- Local authorities
- Devolved administrations
- Educational establishments including universities
- Channel 4
- The Bank of England
What to do next?
For most public sector contractors we advise a switch over to our Umbrella solution which will present you with a better Take Home Pay under the new rules, whilst also granting you employment rights such as access to Sick Pay, Maternity Pay etc and all tax and national insurance payments are handled by our Umbrella company.
As part of the switchover service Umbrella Accountants will close down your existing Limited Company for FREE.
- Liaise with your agency and ensure that you have no breaks in payments
- Close down your existing company for FREE
- Provide you with our award-winning Umbrella customer service
“For those contractors that carry out a mixture of Private and Public sector work we can fully support your contracts and calculate your revised income figures for each contract.
If you contract for any of the aforementioned organisations we advise getting in touch with our specialist switching team as soon as possible so that we can talk you through your options.” Neil Armitage, Operations Director
Call 01625 546 610, email firstname.lastname@example.org or visit http://www.umbrella.co.uk/public-sector-contractors to find out more.