IR35
IR35 - Important information for Contractors supplying their services through a personal service company (PSC)
From 6 April 2017 new rules (Off Payroll Working in the Public Sector) will move the responsibility for assessing IR35 (employed/self-employed for tax) status from the PSC to the Public Sector body receiving the services. If deemed inside IR35 then the party paying the PSC, either the Public Sector Body or the Agency, or other third party, will have to deduct income tax and National Insurance from the “Deemed” employment income.
We anticipate that the overwhelming majority of public sector assignments we will supply PSCs into, will fall inside IR35. Some contractors currently working through PSCs may wish to continue doing so, particularly if they undertake assignments from time to time on an outside IR35 basis. Alternatively, they may elect to transfer on to the Opalrange Recruitment Consultancy payroll as a traditional PAYE temporary worker or to start supplying their services via an umbrella company, which will itself be responsible for administering PAYE income tax and NICs deductions.
We will be exploring next steps with our Limited Contractors and Clients over the coming weeks and as the full extent of the new legislation becomes clearer.
More detailed information can be found on the HMRC website, links below or you can e-mail us with specific questions.
The Government Changes Will Not Effect Opalrange Recruitment Consultancy Because Our Payroll Will Take Care Of Anything Relating To IR35 Including All The Items Below.
IR35 - Important information for Contractors supplying their services through a personal service company (PSC)
From 6 April 2017 new rules (Off Payroll Working in the Public Sector) will move the responsibility for assessing IR35 (employed/self-employed for tax) status from the PSC to the Public Sector body receiving the services. If deemed inside IR35 then the party paying the PSC, either the Public Sector Body or the Agency, or other third party, will have to deduct income tax and National Insurance from the “Deemed” employment income.
We anticipate that the overwhelming majority of public sector assignments we will supply PSCs into, will fall inside IR35. Some contractors currently working through PSCs may wish to continue doing so, particularly if they undertake assignments from time to time on an outside IR35 basis. Alternatively, they may elect to transfer on to the Opalrange Recruitment Consultancy payroll as a traditional PAYE temporary worker or to start supplying their services via an umbrella company, which will itself be responsible for administering PAYE income tax and NICs deductions.
We will be exploring next steps with our Limited Contractors and Clients over the coming weeks and as the full extent of the new legislation becomes clearer.
More detailed information can be found on the HMRC website, links below or you can e-mail us with specific questions.
The Government Changes Will Not Effect Opalrange Recruitment Consultancy Because Our Payroll Will Take Care Of Anything Relating To IR35 Including All The Items Below.
- Workers can continue billing through their own PSC for work inside IR35.
- Opalrange Recruitment Consultancy are not the fee payer and therefore avoid any potential risk and penalties.
- Our System We Use 'GAIN' Who take care of Our admin and even complete Our intermediary reporting.
- Workers deemed inside of IR35 are not included on Our PAYE returns, so they’re not included as part of any Apprenticeship Levy calculations or gender pay gap reports.
- The IR35 assignments Will Be Funded By Our Partners Who Take Care Of All Opalrange Recruitment Consultancy's Back Office.