Public Sector Contractors: New IR35 Rules

April 1, 2017 | Posted by Administrator | Accounting, Business Advice, Taxation, Whitepapers,

What’s changed for Public Sector Contractors?

From April 6 this year, new IR35 rules became applicable to service contracts in the public sector.

The responsibility and liability for IR35 now shifts from the contractor to the public authority under this new legislation.

Therefore the public authority will assess each engagement and decide whether IR35 applies or not. 

Last month, HMRC published guidance along with an online assessment tool which you can use to determine whether IR35 applies.

Are you confused by what the changes mean for you?

If you’re not sure what this means for you, you’re not alone! IR35 can be very confusing, therefore we have worked through the relevant documents and assessed the changes. As a result of this we have created a new research paper which summarises the relevant information for you. The research paper will guide you through the changes for public sector engagements.

Our Public Contractor IR35 Guide includes information on:

  1. Who is covered and who isn’t? 
  2. When do the new rules apply? 
  3. What is the tax burden for public sector contractors? 
  4. What deductions are available while calculating tax? 
  5. Who is responsible for national minimum wage and other employment laws in relation to the contractor?
  6. Is a corporate structure still justified for public sector engagements? 
  7. Will the new provisions lead to double taxation of the same income? 
  8. How will the new mechanism work and how can you prepare for it? 
  9. Is there an appeal process to contest the decision of the public authority? 
  10. How can the contractor cover any losses? 
  11. What should be included in the contract prior to engagements to avoid disputes?  

You can download the guide by completing the form below.

The purpose of this document is to help you understand the implications of the IR35 legislation changes when working within the public sector.  If you would like to know more about how these changes affect you, please contact us for bespoke advice.

Right Cue Consulting Services Limited is the owner or the licensee of all intellectual property rights in this document. All rights are reserved. You are permitted to use this document or extracts from it for personal use only. Our status as the authors of this document must always be acknowledged. You are prohibited from using any part of this document for commercial purposes without obtaining a license to do so from us.

As a fully qualified tax adviser and accountant and with an impressive history in the corporate environment; Sonal brings significant experience and expertise to RightCue Tax Advisers, where she has the role of Managing Partner. If you would like further advice on any of the above, please contact Sonal on 01256 406601 or [email protected].


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