Public Sector contractors working outside IR35

[RJR]

How is it that PSC contractors working for HMRC are able to work outside of IR35 if they are part of contingent Labour supplier contractors when other suppliers providing contractors have to work inside IR35? They are all working under the direction of HMRC staff or other supplier resources to HMRCs process and systems which is almost impossible not to when you can only use HMRC laptops?

[northernladuk]

How is it that PSC contractors working for HMRC are able to work outside of IR35 if they are part of contingent Labour supplier contractors when other suppliers providing contractors have to work inside IR35? They are all working under the direction of HMRC staff or other supplier resources to HMRCs process and systems which is almost impossible not to when you can only use HMRC laptops?

Depends on what type of work is required and what framework they are under. Still possible HMRC want to engage a small consultancy to deliver something as a service they don't have so are outside while bums on seats and temp positions can be inside. Just like any other public sector client and even private. I know the DfE ran this pretty well once they got to grips after the legislation hit. Probably 70/30 split inside and outside which reflected the type of work people were doing.

None of the items you mentioned in the last sentence make much difference to the IR status. Direction and Control has some quite specific rules so working along side a perm colleague following their process is totally allowable. What they can't do is give an outside person any extra work or move them around in projects like they could a temp. Using their laptops has nothing to do with IR35 either. They may stipulate it due to security concerns so a totally valid ask. Many big consultancies working at DfE had laptops allocated for accessing systems at one point but now their BYOD policies are better prepared I doubt this is the case as much now.

Now do HMRC managers give their outside contractors extra tasks when they shouldn't? Possibly but that's not how the role was designed when they ran the SDS. That's down to line managers and contractors to understand the role and stick to it. That's just a people problem rather than the decision to take someone on inside or outside. Shouldn't be doing it but it happens.

[SueEllen]

IR35 has never been about what equipment you use.

I've done government projects for different departments using my own or their equipment. It has depended on what data and systems I've needed access to what equipment I've been allowed and required to use.

There are other laws and regulations that govern data security and some of these have much bigger legal implications to individuals and organisations if they go wrong.

[northernladuk]

They are all working under the direction of HMRC staff or other supplier resources to HMRCs process and systems which is almost impossible not to when you can only use HMRC laptops?

This is why they are are outside and you are inside.