31 January 2017
With just weeks away until the upcoming changes to IR35, SmartWork has seen an increase in the number of enquiries from Personal Service Companies (PSC) working in the Public Sector looking at their options post April. From the 6th April, Public Sector Bodies will be responsible for determining whether the worker is inside or outside of IR35. We have already seen the Transport of London impose a blanket ban on workers operating through their own PSCs.
If found inside of IR35, the agency (or whoever pays the worker) will be responsible for deducting Tax and NIC’s tax at source. The PSC will not receive the 5% allowance for expenses and, with similarly punitive changes to VAT also being introduced, the worker may no longer see the benefit of operating via their own company. As a result of the changes, many workers are requesting an uplift in pay, moving into private sector work (where possible) or migrating over to an umbrella solution such as SmartWork.
We have had substantial success in helping contractors over the years through our Umbrella solution. SmartWork is offering a free Consultation, should you wish to discuss the new legislation in more detail. Simply call us on 0800 434 6446 or send us a message here.