Please forgive my direct approach.
As you will no doubt be aware that the Government’s announced in the 2016 Autumn Statement that it would reform the intermediaries rules, often known as IR35.
The government has decided that from 6 April 2017, responsibility for deciding whether the “off payroll working in the public sector” rules apply to a contract in the public sector and deducting and paying income tax and national insurance contributions (NIC’s) moves from the personal service company (PSC) / other intermediary, to the public sector body, the recruitment agency or third party engaging the PSC.
The impact of these changes to you is that where we determine that these new rules apply, we will deduct and pay appropriate income tax at basic rate and NICs to HM Revenue and Customs. The new rules apply to contracts entered in to before 6 April 2017 and to payments made on or after that date. Therefore, work completed on your Assignment before 6 April but paid after this date, will fall within the new rules and we will be required to make appropriate deductions.
Many of our Public Sector clients are concerned around the impact of these changes and we are already seeing a shift from Ltd Company contracts to PAYE requirements. Whilst there will still be a demand for Ltd Company resource and indeed you can continue to engage on this basis, we are looking to build a bench of ‘PAYE friendly’ contractors for those clients who simply will not engage otherwise. As such, if you are available at short notice and happy to work in the Public Sector on a PAYE basis, please do send over your latest CV and a quick overview of your availability. Alternatively, if you know of other individuals who may be interested, please feel free to forward my details within your network.
Naturally, if you wish to continue to operate on a Ltd Company basis, Robert Half will still continue to work with you and will brief you on those roles, however the appropriate deductions will need to be made at source.
I apologise if this e-mail has reached you in error.