AS16………….IR35……………Are you ready?April 6th, 2017 is fast approaching and with that comes all the changes relating to IR35 legislation. Whilst the Public Sector dominates the spotlight for the change, the private sector doesn’t go unnoticed.Within the Public Sector, we are seeing legislative change, like we’ve never seen before. The most significant factor seeing the end client being responsible for the compliance of their contractors.Don’t underestimate this change. The new rules will … [Read more...]
IR35 inspectors to probe public PSCs retrospectively
Personal service companies deemed inside the public sector’s April 6th off-payroll rules risk having their entire history of contracts probed under IR35, not just those after the date.Most at risk of being investigated under IR35 retrospectively are the ‘pre-April 6th’ contracts the PSC has with the public client, who deems the rules to apply to the PSC ‘post-April 6th.’This was the assessment yesterday from three separate experts on the incoming rules; status advisory Bauer & … [Read more...]
Umbrella vs In-house PAYE
Finding it difficult to decide? Are you stuck between using an agency which offers internal PAYE or working for an Umbrella company? There are a few things you’ll need to consider before you make a decision.One of the main benefits of Umbrella over in-house PAYE is that with Umbrella you are fully covered by employment rights throughout. This includes statutory payments, such as; sick pay, maternity/paternity pay and holiday pay (if you do not opt out). Your workers’ rights are not always … [Read more...]
IR35 – are you missing the elephant in the room?
The new “off payroll” rules for workers in the public sector are planned to go live on 6 April.HMRC have issued some guidance with more promised in the next few weeks and the draft legislation has been published but is likely to change before it is finalised.We have an unfinished status tool that won't be ready for public consumption until the end of February.Some public sector organisations are making knee jerk decisions around the status of their contractors and expecting that … [Read more...]
75 Days to go…
As we have stated previously, 'Do you operate in the Public Sector?’, one thing is clear, the landscape of temporary workers within the Public Sector will be affected by the imminent changes to the IR35 regulations. On Wednesday this week, TfL announced that they would no longer be accepting workers who operate through their own Professional Services Company (PSC) and we expect that this will be a continuing trend. The NHS has already ordered hospitals and healthcare institutes to stop paying … [Read more...]
TfL bans PSC contractors ahead of IR35 change
Transport for London has become the first public sector body to react to April’s IR35 reforms by imposing a blanket ban on workers who operate through their own limited company.Under the reforms, such bodies will -- for the first time -- become responsible for the difficult decision of assessing whether their limited company staff (known as ‘PSCs’) are inside IR35.But TfL is heading off both having to use an IR35 digitial tool due to be released by HMRC to help end-users reach such a … [Read more...]
Status of ‘gig’ economy workers thrown into question again
The status of workers in the ‘gig’ economy has been thrown back into the spotlight, following a ruling that a courier with logistics firm City Sprint should be classed as a worker rather than self-employed.The BBC reported late last week a tribunal classed Maggie Dewhurst, the courier in question, as a worker, and therefore should be entitled to basic rights including holiday and sick pay, and the National Living Wage.City Sprint said it was "disappointed" at the ruling and will review … [Read more...]
NHS IT agency foresees PSCs moving to brollies
Contractors who supply the NHS through limited companies will likely move to umbrella companies before April’s IR35 reform comes into force, a health service IT recruiter predicts.Contractors’ next best alternative is to leave the public sector or the NHS for the private sector instead, says Don Tomlinson, managing director of NHS IT staffing firm max20.Tomlinson sounded aware that contractors who don’t act before April will have a third option -- stay as a limited company and accept the … [Read more...]
HMRC reveals plans for new public sector IR35 legislation—industry responds
This Monday saw the release of the HMRC’s draft finance bill, detailing the reforms as to how the IR35 legislation must be operated in the public sector from April 2017.There have been strong reactions from industry bodies to the Government’s new ‘Draft provisions for Finance Bill 2017’, nearly 400 pages of new tax legislation setting out the draft provisions for technical consultation, including changes to National Insurance contributions, clampdown on salary sacrifice contracts for new car … [Read more...]
Don’t be left in the dark about your Self-Employed Status
For many years being Self Employed meant working for yourself with no input from anyone else. Gone are the days of “cash-in-hand” as HMRC are clamping down on the whereabouts of Tax and NI for these services. If you are actively sourcing your own work for yourself and have no input from another source then you can be classed as self-employed, if however, you rely on an agency to source you this work then you are classed as employed and so will need to be PAYE or Limited status.PAYE can be … [Read more...]