I've just been offered a new contract where the agency has said by default the contract will be within IR35.
The information the gave me was:
"From April 6th 2016 legislation has changed in respect of Travel and Subsistence (T&S) for umbrella company contractors, “restricting” T&S expenses for such workers.
The government believes that it is unfair that contractors (especially those on their umbrella’s payroll) claim tax relief on travel and subsistence expenses for home-to-work travel costs, when permanent employees cannot.
Originally this legislation was aimed at the Umbrella Market, but consequently, HMRC has decided that workers who operate through an intermediary (recruitment agency, umbrella company or PSC (a Limited Company)) would also no longer be able to claim tax relief on travel and subsistence expenses if they are under the Supervision, Direction or Control (SDC) of anyone within the contractual chain.
This denial of tax relief, will also apply to such contractors if anyone in the chain merely has the 'right' to supervise, direct or control them, even if that person does not exercise that right to SDC. From now onwards, HMRC will assume that all contractors who work through an intermediary will be under SDC unless they can prove otherwise.
If this cannot be proved by the client then we must take that as confirmation the contract will be “supervised” and that all contractors who work through an Umbrella or Limited Company (PSC) will be under SDC therefore they will be inside IR35.
It is not a public sector contract. Do I have any options? Or is this what all agencies are now planning to do?
I'm getting contract review by QDOS.