By Lynne Gowers on 20th January 2017

Off-payroll workers in the public sector – talk the changes through with a Boox specialist

Talk to Boox

If you are contracting as a limited company (PSC) in the public sector, important changes from April will affect you.

You need to consider your circumstances now! We are here to help you fully understand what the changes mean and decide the best way forward. From February we will be offering 1-to-1 telephone consultations to anyone affected. Book a consultation with a Boox specialist

In the meantime here is an overview of what’s happening:

Who is affected?

Any contractor operating a PSC and working for a public sector body, including:

  • Social workers
  • NHS
  • Local Authority
  • Police and armed forces
  • BBC and Channel 4
  • Network Rail

What is changing?

From April, the responsibility for determining IR35 status will transfer from the individual to the public sector body they are working for, even if they are being supplied via a recruitment agency.

We believe it is likely that public sector bodies will deem most contractors as caught by IR35 and operate “deemed payments”, in other words deduct the same amount of tax and NI as they would for an employee.

What does this mean?

This change to the off-payroll working rules, together with the removal of the 5% tax-free allowance for IR35-caught companies in the public sector, means that after April the take home pay between PSC and Umbrella will become very similar, although both are probably still better than being paid directly. There is still a sound business case for staying limited, so this is why we are encouraging those affected to consider their circumstances carefully, and do what is best for them.

Book a consultation today

We are offering all of our clients who are affected by these changes a FREE consultation with our specialist IR35 team. Places are filling up fast so we urge you to book early. Just click here and follow the simple instructions to book your slot.

Book IR35 consultation


Lynne Gowers Written by Lynne Gowers

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