If you are a consultant providing services in the public sector you will need to be aware of the changes that are due to take effect on the way IR35 is applied. From 6 April 2017, “responsibility for deciding whether the legislation (IR35) should be applied will move from the workers intermediary to the public authority” the worker is supplying their services to.
As a consultant you should be aware that the fee payer (public authority or agency) will now be responsible for calculating your income tax and primary National Insurance Contributions and paying these to HMRC. These amounts will then be deducted from your fee.
The changes will apply to:
- public authorities that hire off payroll contractors
- public sector tax managers, payroll managers and HR
- agencies and third parties who supply contractors to the public sector
- contractors who provide their services to a public authority through an intermediary.
Before the changes take effect, public authorities, agencies and third parties supplying contractors will need to consider existing contracts and make the appropriate preparations.
Please contact Michael Burgess on 01782 279615 if you have any questions or queries.