IR35 Off Payroll working in the Public Sector
Over the past year the recruitment industry has been expecting significant changes in the treatment of contractors working for Public Sector organisations. The first of many such changes we suspect.
Following the Autumn Statement 2016 and the 5th December publication of draft legislation for the Finance Bill 2017, it has now become clear that contractors, as and when they are deemed to fall under the new legislation, will be paid subject to the relevant PAYE, NICs and Apprenticeship Levy rules and calculated and included in RTI with other general PAYE payroll processing.
The implications for this are going to be quite significant for the operational processing of any recruitment business that doesn’t have either the right tools or the right supplier to help them. We appreciate that the market will likely be flooded with inventive accounting schemes to help ‘manage’ this law change, but it’s clear that the government has the bit between it’s teeth on this subject, so you are best to think long term and find a straightforward solution that is designed to operate in the spirit of the law both now and in the future.
As one of the leading suppliers in the UK for recruiter technology and services, we can help you in two ways.
- Outsourcing – we can offer a fully outsourced payroll and billing service to recruiters and will manage the legislative requirements outlined above on your behalf. This can be for part or all of your business.
- Software supply – we can supply the UK’s most comprehensive payroll and billing solution, Safe Tempest, which supports the IR35 off payroll legislation out of the box.