Back in the 2016 Budget it was announced that the means by which IR35 would be handled in the public sector was going to change to ensure greater compliance. This means the following:-
- The person responsible for making the determination of whether someone is inside or outside IR35 is now the public sector agency / department.
- Contractors caught by IR35 in the public sector will only receive payments net of tax.
- As you are inside IR35 you can no longer claim travel and subsistence expenses.
Is my client caught by these rules
The definition of what is or is not a public sector client is based on the Freedom of Information Act. This means that if the organisation is covered by that act they have to apply the Public Sector IR35 others, if not mentioned in the Act they do not.
Hence Universities (technically not part of the Government) are covered by the rules, RBS (although 80% owned by the Government) is excluded from the rules.
Working through a Consultancy
Depending on what services a consultancy is providing to a public sector department and how those services are being provided - you may or not be caught inside the rules - see http://www.contractoruk.com/news/001...re_caught.html
I will add that the thing to remember is that the law has been written not to catch people and companies but to stop departments creating false "consultancies" to get round the rules.
Yes, the rules have the side effect of catching people supplied through consultancies but I believe that is the purpose is to ensure the obvious tricks a department could use to get round the rules can't be used.
Note - this is currently a work in progress. I will be adding to it and comments are welcome (just PM me)