CV Dropoff

Job Basket 0

Your basket is empty.

Search Site

Filters

Select a Salary

Per Day
Per Hour

Surprise Change to Off-Payroll Working in the Public Sector

12 Dec 2016

At First Recruitment Group we stay close to the issues that matter to our clients and contractors. Last week there was a surprise change to off-payroll working in the public sector that we feel you may want to know about. The new rules only apply where the services of a worker are provided through an intermediary to a public sector client.

Background

Back in August this year HMRC stated that they were planning to make the engager, usually the agency supplying and paying the contractor, liable for IR35 compliance. The engager would then be expected to liaise between the client and the contractor when answering a series of questions using HMRC’s new online digital assessment tool to determine whether the contractor fell under the IR35 rules.

Public sector clients responsible for IR35 status

HMRC are still working on this digital tool to support the decision process, but contrary to what they originally intended, they have recently released draft legislation explaining that public sector clients will be responsible for checking IR35 status.

This surprise change will apply even when an agency is involved in the hiring process and in the subsequent supply of the contractors’ services.

These notes are taken from the legislation’s technical notes:

Requirement on public sector body to provide information to agency as to whether employment status test is met
“The public sector client must inform the intermediary, agency, or third party with whom they have a contract to provide the services that the contract falls within the new off-payroll rules or that it does not.”

Accounting for Tax, NICs
“Where the rules apply, the person paying the fee to the intermediary for the worker’s services “the fee payer”, is treated as an employer for tax, NICs and Employment allowance purposes.”

Will this affect you?

A number of our clients and contractors have questioned whether this will affect their businesses, especially those that are providing services and/or are working within the public sector. It’s important to understand that when these changes come into effect in April 2017, they will only apply to contractors that are providing their services as self-employed, LTD companies or PSC’s to public sector clients.

A public sector client

The new rules apply where the services of a worker are provided through an intermediary to a public sector client. A public sector client means a public authority for the purposes of:

  • the Freedom of Information Act 2000
  • the Freedom of Information (Scotland) Act 2002

The government anticipates these changes will be introduced as part of the Finance Bill and will be in force from 6 April 2017.

We expect HMRC to release further details and a beta version of the online digital assessment tool in the coming months.

We hope this information proves useful and helps you to prepare accordingly.

Help someone you know take the next step in their career with First Recruitment Group.

Refer a Friend

Testimonials

“We have required a number of Quality Assurance/Quality Control candidates within the Nuclear Industry. Since early 2016 First Recruitment Group have provided a number of QA/QC professionals in locations across the UK.

“We have been very pleased with both the quality of supply and the customer service demonstrated and will continue to use their professional services in the future.”

Bureau Veritas

“I have worked with First Recruitment Group as my partner of choice across a number of large and challenging Oil & Gas projects internationally over recent years.

“First are a high performing business who are built on credibility, honesty, expertise.

“As we push the frontiers of projects and move in to more and more challenging and locations, First will continue to be my partner of choice to help us deliver our projects with confidence.”

TechnipFMC

"I have had the pleasure of working with First Recruitment Group over recent years and we have formed a great working relationship. Their understanding of our exacting requirements is outstanding.

"The First team are highly experienced and knowledgeable across the recruitment spectrum and operate in the manner you would expect of a professional outfit of their stature. Their attention to detail and approach is faultless and their commitment and drive has helped our business with unique, complex and difficult recruitment requirements.

"Sarah, our Account Manager, is an incisive thinker as well as hardworking, diligent and reliable and has an extremely helpful and flexible approach to her work. This reflects in her team and with their ability to communicate at all levels in an honest and trusted consultative manner and gives us great faith in their ability to identify candidates who can help us to drive forward and achieve our business goals.

"I have no hesitation in recommending First as a recruitment partner and feel they would be worthy of selection for any engineering or manufacturing business looking for an intelligent and innovative solution."

Nuvia

“There is nothing negative about the service that we’ve received from First. Without fail they have produced positive feedback. The fact that they have placed a diverse range of skills from PA's to Engineers, just goes to show that they have the core skills, intelligence, and initiative that make them great recruiters, and preferred partners.”

Multi-Sector Client

"It’s great to work with a recruitment agency we trust. The team at First Recruitment Group are friendly and straight talking and they continue to provide an excellent service. We’re proud to still be working with them after 20 years."

Simon Carves Engineering Ltd

Read all Testimonials

Help us with our survey
Do you feel the jobs market has picked up?

Our Specialist Sectors