Off payroll working in the public sector – is your agency ready?
As confirmed in the small print of the Autumn Statement, the government is pressing ahead with plans to, in its words, “reform the off payroll working rules in the public sector from April 2017 by moving responsibility for operating them, and paying the correct tax, to the body paying the worker’s company”.
This means that from April, agencies contracting with PSCs who operate in the public sector space will have a raft of new obligations:
- To confirm the IR35 status of every PSC they are paying
- To deduct appropriate tax and Employees NI if the PSC is caught by IR35
- To carry out the associated reporting to HMRC through RTI
- To pay the Employers NI if the PSC is caught by IR35
Not only that, if subsequent investigations determine that the IR35 rules were not applied correctly, the agency will carry the can for unpaid tax and NI.
As a recruiter you will no doubt be considering what you need to do to remain compliant in an area of increasing complexity and what it will mean for already squeezed resources and margins.
You may well be wishing someone could wave a magic wand and make it all go away. What if we can?
IR35 Total Admin
We are launching a new IR35 Specialist service enabling agencies to outsource the entire administration of their PSC payroll. It doesn’t matter if you are paying 10 companies, or 10,000, Liquid Friday already has the expertise and infrastructure in place to manage it for you.
Compliant, easy, low cost
Not only is this a simple way of complying with the new rules, instead of making multiple payments to multiple PSCs, you will only be dealing with one administration service, so your resource burden will be even less than it is today.
Find out more
Come talk to us on 0800 316 6030 or email [email protected]
For more information go to the IR35 Helpline website at http://www.ir35helpline.co.uk