Important changes to public sector contractors working under IR35 legislation have taken effect for 2017/18.
Individuals who work through intermediaries, such as personal service companies, are no longer subject to IR35 rules if they work in the public sector.
Public sector organisations or agencies paying off-payroll workers are now responsible for deciding whether the work falls within IR35. They must deduct income tax and national insurance (NI) if they deem the worker an employee within IR35.
Under previous rules, intermediaries were responsible for calculating and paying the contractor’s income tax and NI owed to HMRC. (more…)