31 / 5 / 2017 2.45pm
On 6 April 2017, the way the intermediaries legislation (known as IR35) applied to off-payroll working in the public sector changed.
The reform applies to payments made on or after 6 April 2017, including payments made for contracts entered into before this date. Where the new rules apply, people who work in the public sector through an intermediary will pay employment taxes in a similar way to employees.
Who does this affect?
These changes will apply to:
- public authorities who hire off-payroll contractors
- public sector tax managers, payroll managers, human resources managers and procurement managers
- agencies and third parties who supply contractors to the public sector
- contractors who provide their services to a public authority through an intermediary.
What should employers be doing?
NHS Employers will need to consider if off-payroll working rules apply when engaging a worker through a Personal Services Company (PSC).
For further information and guidance please visit the GOV.UK website: