Following the introduction of new IR35 enforcement measures in May 2012, and ongoing efforts to clamp down on personal service companies in the public sector, it may come as some surprise that only a few lines in the supporting Autumn Statement documentation even mention ‘IR35’.
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public sector contractor
PCG, the contractors’ organisation, has written to the Chancellor in advance of his December 5th Autumn Statement, to highlight two controversial issues which affect public sector contractors and interims in particular.
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The BBC has published a report into how it currently engages freelance contractors, and will introduce changes from April 2013 which are likely to reduce the number of freelancers hired via their own personal limited companies.
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The Public Accounts Committee has released a report into the use of ‘off payroll’ payment procedures in the public sector organisations, and criticises both the Government and HMRC over the widespread use of personal limited companies by public sector workers.
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Data obtained via a Freedom of Information request shows that the number of IR35 investigations has risen markedly over the past two years, as HMRC steps up its anti tax-avoidance activity.
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Following the implementation of new ‘off payroll’ remuneration rules by public sector bodies, a leading provider of IR35 solutions (Qdos) has created a public sector contractor package which includes contract reviews and a certification pack to demonstrate compliance with the new requirements.
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Despite the massive cost-cutting measures implemented by Government bodies over the past year, the demand for public sector IT contractors appears to have levelled out according to statistics derived from the leading IT jobs boards over the past year.
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The UK’s leading contractor organisation, PCG, has issued some practical steps for contractors engaged by public sector bodies to follow when dealing with new ‘off payroll’ remuneration guidelines which are due to take effect in September.
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