What is your view of work from the GCLoud in terms of the new proposed IR35 rules?
So GCloud = Public sector portal where PS companies can find services and products from approved suppliers, and visa-versa (companies bidding for PS deliveries)
So if you win a Gcloud contract to supply a chunk of software (lets say create a web site, or create a new database, or create and carry out a training course to train a bunch of people on something), is this inside or outside of the new IR35 rules?
It could be viewed as being as 'jasmine' scenario...
Jasmine is a Website Designer, contracted to a large local authority to design and build a website - off-payroll working rules do not apply.
Jasmine is a website designer who provides her services through her own company, Jasmine WWW Ltd. The PSC has been contracted by a local authority, Midshire CC to design and build a new website, through which local residents should be able to access and use their services.
Midshire CC has agreed to pay Jasmine WWW Ltd £200,000 for Jasmineís services.
Do off-payroll rules apply?
Jasmineís task is to design and build the new website. To do so, she will need to work closely with the council to understand their requirements, including technical specifications and timelines. Jasmine will have a large amount of control for how she delivers her work and other than regular checkpoint meetings and progress appraisals with the councilís Head of IT Services, her work will be largely unsupervised.
Jasmine WWW Ltdís contract with Midshire CC means Jasmine will be expected to:
deliver the website to an agree standard by the agreed date
visit the councilís offices for meetings, but will mainly work from her own office
provided her own equipment needed to do the job in hand
employ her own staff to help deliver the contract if she needs to
cover her own costs and expenses
Using the Employment Status Service
Midshire CC uses the online Employment Status Service to help determine whether the off-payroll rules should apply to the contract with Jasmine WWW Ltd. Given the nature of Jasmineís work and the contract with the PSC, the service indicates that the rules do not apply in this instance.
Jasmine WWW Ltd has been contracted to provide a distinct product to the council and will bear the costs associated in delivering that. Although her work is for the public sector, Jasmine will not be performing a role which would be considered to be that of an employee.