CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. HMRC Updated IR35 Guidance For Public Sector Contracts

HMRC Updated IR35 Guidance For Public Sector Contracts

by Jason Gorringe, Tax-News.com, London

07 March 2017


HM Revenue and Customs has published further guidance for intermediaries on the implementation of IR35 legislation covering the tax treatment of public sector contractors from April 6.

The technical note said that, subject to parliamentary approval and Royal Assent, the measure will apply to contracts entered into before the implementation date. If work is completed before then but payment made on or after April 6 2017, it will be within the new legislation.

IR35 may apply if someone is working for an organization through an intermediary, typically a Personal Service Company (PSC). If IR35 applies, all payments to an intermediary are treated as if they were the worker's employment income, and the intermediary must pay any tax and National Insurance contributions (NICs) due.

From April 2017, where workers are engaged through their own limited company (i.e. a PSC), responsibility to apply the IR35 rules will fall to the public sector body, agency, or other third party paying the worker's company. The public sector body, agency, or other third party will be liable to pay any associated income tax and NICs.

TAGS: Insurance | tax | public sector | United Kingdom | contractors | legislation

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »