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Latest Article: Public Sector - Off Payroll Employees
Posted by: david on Jan 19, 2017

As the debate heats up on this subject it is worth considering the fact that even HMRC haven't quite rounded off their process for the way to assess 'Contractors'.

Although the framework has been laid out in several lengthy documents from HMRC, it doesn't cover the practicalities of what this means for all parties, so here is a quick overview as we see it -

Consultancies operating under a Framework agreement

I don’t believe that these are subject to the new rules 

Consultancies operating as an ‘Agency’

Are subject to the new rules

Direct to client

Are subject to the new rules

Via an Agency

Are subject to the new rules

Conclusion

Even if the new rules do apply, it is up to the Public sector body to provide feedback and information relating to the IR35 status. Many of you will therefore be asking your end client to give you information, which sadly most of them won't be able to provide (as the guidelines are not as clear cut as they should be).

To ensure that you are trading in a way that keeps you compliant, and ideally in a tax position that reflects the risk and additional costs you in incur as a Contractor, you will need to get input from the end client (public sector department) and then evaluate the position from there.

Market pundits are suggesting that this legilslation has been rushed out to satisfy HMRC desire to level the playing field for taxation. But it doesn't take into consideration the practical application of the rules, or the real danger that all Public Sector contractors will jump to the Private sector.

Imagine all the Projects that will be hindered by this, including the Brexit, NHS and other related plans within the UK!

Naturally I am sure if reading this you are a concerned party either as an Agency or a Contractor, and if you need further guidance feel free to get in touch.

You can contact us using info@rodliffeaccounting.com or on the phone using 02076143100.

Alternatively, follow us on social media, through TwitterFacebookGoogle+ & Linkedin.

Job4Contractors for contractors who are on a dormant period

Follow Jobs4Contractors on Twitter & Linkedin

Check out Rodliffe Accounting's subsidiaries for other options.

 

 
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