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.
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’.