You're probably not going to like this - we certainly don't

[IPSE]

A short while back - before all the Brexit furore - HMRC announced worrying plans to radically change the way IR35 works for public sector engagements. IPSE will robustly fight the plans announced in the consultation, published on May 26th, which the government intends to come into force from April 2017.

What exactly is government proposing?

The consultation document puts forward a set of proposals that will change the way IR35 works for public sector engagements. In essence the government wants public sector organisations or the agency to determine the IR35 status of engagements and then, if caught, apply taxes as they would for their employees, through the RTI system. This paragraph from page six sums it up:

‘This means that where an individual provides services to a public sector engager through a PSC and is doing a similar job in a similar manner to an employee, both they and their engager will be required to pay broadly the same tax and National Insurance as if they were an employee. This will be the case whether the individual is engaged directly or through a third party such as a recruitment agency. Taxes will be reported through the Real Time Information system, and paid using HMRC’s accounting procedures which public sector organisations and agencies will already be using for any individuals they employ directly’.

For more details and to keep up-to-date on the consultation and IPSE's response to it, visit www.ipse.co.uk - we'll also post here as things develop.

[DonkeyRhubarb]

And, if it proves successful for the public sector...

[TestMangler]

When you say 'robustly fight', do you mean 'accept and sell an insurance product for it' or 'propose something just as bad but robustly fight for 10% off at BHS' ?

[northernladuk]

Didn't one of our posters say IPSE don't sell insurance?

[eek]

A short while back - before all the Brexit furore - HMRC announced worrying plans to radically change the way IR35 works for public sector engagements. IPSE will robustly fight the plans announced in the consultation, published on May 26th, which the government intends to come into force from April 2017.

What exactly is government proposing?

The consultation document puts forward a set of proposals that will change the way IR35 works for public sector engagements. In essence the government wants public sector organisations or the agency to determine the IR35 status of engagements and then, if caught, apply taxes as they would for their employees, through the RTI system. This paragraph from page six sums it up:



For more details and to keep up-to-date on the consultation and IPSE's response to it, visit www.ipse.co.uk - we'll also post here as things develop.

Keep up at the back - we knew about it on May 26th (and from memory I think it was myself that pointed IPSE at it)....

As for the need to panic.... Yep I'd agree with that this is a done deal as will be reflected by other payroll changes in the Autumn statement to reflect the changing world and the abuse of self-employment... That has full union backing so unless you are working with the unions you won't have a prayer....

[LondonManc]

No doubt sponsored/recommended by Crapita to get competent contractors out of their way.

[Hobosapien]

At least it gives us until next April to get well clear of the PS. They will then be blacklisted as far as my future work seeking goes.

I'm sure the government will have it all well thought out so after the agency pays the tax on the contractor's behalf that double taxation is easy to avoid for the rest of the invoice payment made from the agency to the ltd. The accountants will be rubbing their hands in all the extra effort for ltd company accounts to ensure it's handled correctly. Good for them, not for me, I'm out.

[IPSE]

When you say 'robustly fight', do you mean 'accept and sell an insurance product for it' or 'propose something just as bad but robustly fight for 10% off at BHS' ?

You appeal to the cynic in me too

However, I think we meant robustly fight as in what we did on S660, changes to T&S allowance for LtdCos, Security Clearance, MAC rules tightened, AWD exclusion for LtdCos, AWR, SmallBiz Commissioner, HMRC corrupted BETs withdrawn, one/two month proposal scotched. We do our best and, as a not-for-profit, it's our core activity. The other member benefits, e.g. savings for our members of >£500k this quarter alone, are just icing on their cake.

[IPSE]

And, if it proves successful for the public sector...

That's the big worry we have too.

[MrMarkyMark]

You appeal to the cynic in me too

However, I think we meant robustly fight as in what we did on S660, changes to T&S allowance for LtdCos, Security Clearance, MAC rules tightened, AWD exclusion for LtdCos, AWR, SmallBiz Commissioner, HMRC corrupted BETs withdrawn, one/two month proposal scotched. We do our best and, as a not-for-profit, it's our core activity. The other member benefits, e.g. savings for our members of >£500k this quarter alone, are just icing on their cake.

Let's not forget the Freelance LTD Co idea