Off-payroll working in the public sector– is regime working smoothly?

From 6 April 2017, new rules for contractors working in the public sector came into force.

 

How the off-payroll working rules affect public sector bodies, contractors and those who directly pay contractors is explained in HMRC’s guidance. It is also covered in our ICAEW Tax Faculty guidance note TAXguide 16/17 at Chapter 7 (available to Tax Faculty members only).

 

We should welcome feedback from public sector bodies, intermediaries, agencies and contractors – or those advising them – on how the regime is working in practice. In particular, what are you experiences of:

 

  • ascertaining whether individual contactors are within or outwith the regime?
  • using HMRC’s tool to check employment status for tax?
  • working out how much contractors should be paid?
  • operating payroll?

 

Also, are there instances in HMRC’s guidance where explanations of how to navigate the rules need clarification?

 

Please post comments below.

  • From my experience, some contractors have accepted that they will be employed for public sector work. Others have chosen not to accept that situation - and depending on how valuable they are to the department in question, ways have been found to describe their engagement as outside IR35 so business can continue as normal.