public sector Articles

marketing | 24 February 2017
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A team of thirty personal service company (PSC) contractors have agreed to abandon an already overrunning NHS IT project, after the Guy’s & St Thomas (GSTT) hospital trust said that the contractors would be declared ‘inside IR35’ from April.

Off-Payroll Working in the Public sector – New Legislation 6th April 2017

As you may already be aware the Autumn Statement delivered a number of measures which effect the contracting sector including changes to IR35 and the VAT Flat Rate Scheme. The government has published a new policy document detailing the changes to IR35 and off-payroll working rules for public sector workers. View document here.

The Changes

PSC or “Limited Company” Contractors operating in the public sector will no longer get a say on whether or not the IR35 ‘intermediaries’ legislation’ applies to them. Consequently if they chose to continue being paid via their limited company, the contractor’s intermediary (Agency / Public sector body) will have to agree to deduct the appropriate TAX and National insurance as the ‘fee payer’.

The Office of Tax Simplification has become the latest in a long line of organisations to criticise the government’s new IR35 proposals, which relate to contractors in the public sector.

The Chancellor George Osborne has announced significant changes that might affect people working in off-payroll public sector jobs.

The announcement will change the way that IR35 legislation is applied - meaning that public sector organisations and authorities including Whitehall departments, schools, the NHS, police and public sector broadcasters like the BBC and Channel 4 - will be responsible for interpreting and enforcing the rules from April 2017.

There will be no change for off-payroll workers in the private sector, although this could change in the future. 

marketing | 22 April 2015
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Business Entity Tests (BET’s) have previously been used in the Public Sector to assess whether a contractor working in the Public Sector is outside the scope of IR35 and hence can be paid through their own limited company. 

FCSA blasts public sector IR35 changes
marketing | 10 February 2017
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A professional contractor employment services body has been scathing in its criticism of the changes to the off-payroll public sector changes, due to take effect in less than two months.

The Freelancer & Contractor Services Association (FCSA), which represents more than 110,000 contractors in the flexible workforce sector, said that the changes raise problems associated with accountancy, points of law and practicality. 

The government has published a new policy document detailing the changes to IR35 and off-payroll working rules for public sector contractors.

Although there weren’t any major shocks in the changes, which come into effect for personal service company (PSC) contractors next April, we thought it beneficial to publish a full preview of the rules so that customers can start to prepare for the changes.
 

marketing | 22 August 2016
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Industry insiders have responded negatively to a consultation on the government’s latest IR35 proposal.

The proposal would see public sector organisations made responsible for determining the IR35 status of a contractor. Practically, this means that many more Personal Service Company contractors will be caught out by the IR35 legislation.

The contractors would be forced to pay tax as if they were traditional full-time employees, without enjoying any of the same employment rights and benefits.

Many inside and outside the industry see this as unfair. There is also a large amount of concern about some of the proposal’s unintended consequences.

The Freelancer & Contractor Services Association (FCSA) warned against leaving the decision to parties that will struggle to make an accurate IR35 assessment. 

Kate Cottrell from Bauer & Cottrell has produced updated guidance for Public Sector workers worried about IR35.

The guidance reflects the withdrawal of the IR35 Business Entity Tests (BET’s) and the publication of the Government’s Procurement Policy Note 08/15: tax arrangements of appointees:

 

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