IR35—off-payroll workers in the public sector
Produced in partnership with David Smith of DLA Piper
IR35—off-payroll workers in the public sector

The following Tax guidance note Produced in partnership with David Smith of DLA Piper provides comprehensive and up to date legal information covering:

  • IR35—off-payroll workers in the public sector
  • Engagements to which the public authority IR35 regime applies
  • Effect of the public authority IR35 regime applying
  • Information to be provided by public authority end clients, workers and transfer of liability provisions
  • NICs
  • Non-compliance
  • Employment status

FORTHCOMING CHANGE: With effect from 6 April 2020, the special rules applying IR35 to off-payroll workers in the public sector are being extended to such workers when they are engaged by private sector entities which are not ‘small’. On 11 July 2019, the government published a draft of most, though not all of the legislation to give effect to the IR35 changes planned for April 2020, as well as a response to a March 2019 consultation document and related discussions. The draft legislation and other documentation published on 11 July 2019 is discussed in detail in Draft Finance Bill 2019–20—Changes to off-payroll working rules from April 2020. It is expected that there will be further refinements to the draft legislation in the next few months and that further guidance will be published. The draft legislation is mainly focussed on extending to private sector entities the rules which are already operating in the public sector. However, there are also some smaller changes to the way in which these rules apply to the public sector.

This Practice Note explains the specific IR35 regime which applies where a 'public authority' engages a worker via an intermediary such as a personal service company (PSC). The relevant legislation has effect in relation to payments made on or after 6 April 2017 (even if such payments