Sunday morning reading, ruminating and musing
Based the recent Autumn 2016 statement from the chancellor
"From 6th April the responsibility for determining IR35 status in public sector engagements will shift from the contractor to the party paying them, which will usually be the recruitment agency. This means the agency will also be liable if they decide a contractor can work outside IR35 and their decision is subsequently challenged by HMRC."
does this mean independent contractors should be avoid any form GOV.UK that takes their contract end date beyond 5th April 2017?
Based on my own reading of this statement, it means that even if a current contract initially looks outside IR35 at the time, in the future it could be viewed as inside IR35 retrospective long after the contract has expired. That being case, any independent contractor ought to avoid GOV.UK 2017 work if the pay scale contract rates remain the same. In other words, GOV.UK would have to compensate contractors at a much higher contract rate, say 10%, via the recruitment agency, but that would be a conflict of interest with the aim of the Autumn statement announcement.
"HMRC are convinced that there is widespread ‘non-compliance’ in the public sector, estimating that 90% of ‘off payroll’ workers are not paying tax correctly."
It is a quite sad that there were / are some parts of the Government Digital Service and GOV.UK that were / are building interesting technology software. Azure/AWS/Cloud/PHP/Java/Microservices/Digital/Agile **** What a cluster (tulip)!
Based the recent Autumn 2016 statement from the chancellor
"From 6th April the responsibility for determining IR35 status in public sector engagements will shift from the contractor to the party paying them, which will usually be the recruitment agency. This means the agency will also be liable if they decide a contractor can work outside IR35 and their decision is subsequently challenged by HMRC."
does this mean independent contractors should be avoid any form GOV.UK that takes their contract end date beyond 5th April 2017?
Based on my own reading of this statement, it means that even if a current contract initially looks outside IR35 at the time, in the future it could be viewed as inside IR35 retrospective long after the contract has expired. That being case, any independent contractor ought to avoid GOV.UK 2017 work if the pay scale contract rates remain the same. In other words, GOV.UK would have to compensate contractors at a much higher contract rate, say 10%, via the recruitment agency, but that would be a conflict of interest with the aim of the Autumn statement announcement.
"HMRC are convinced that there is widespread ‘non-compliance’ in the public sector, estimating that 90% of ‘off payroll’ workers are not paying tax correctly."
It is a quite sad that there were / are some parts of the Government Digital Service and GOV.UK that were / are building interesting technology software. Azure/AWS/Cloud/PHP/Java/Microservices/Digital/Agile **** What a cluster (tulip)!
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