A specialist IR35 solution provider has launched a new product aimed at public sector contractors who have to provide evidence of their IR35 status following the implementation of new ‘off-payroll’ remuneration guidelines.
Seb Maley from Qdos Contractor has provided some background to the new guidelines:
“The original Treasury guidelines specifically refer to workers who are paid over £220 per day and whose contracts last for over 6 months. However, different public sector bodies will be adopting the rules in different ways and it appears that some organisations will be seeking assurance from all ‘off-payroll’ workers, regardless of contract length.
“Workers must first take the Business Entity Test. If they are ‘low’ risk – which is unlikely for the vast majority of contractors – and they provide evidence to support this they can continue as normal. If they are ‘medium’ or ‘high’ risk they must provide assurance that they are paying tax correctly, meaning evidence that they are outside IR35.
“The guidelines suggest using HMRC’s own IR35 review service, but assurance from an independent expert will also be acceptable (which would undoubtedly be a safer and faster route).”
“If workers cannot provide sufficient evidence within 20 days their contract could be terminated and details may be passed to HMRC for further consideration. Therefore it is imperative that contractors take positive action as quickly as possible.”
Public sector IR35 solution
Here are brief details of the new IR35 package:
The Qdos Public Sector IR35 Solution gives contractors everything they need to provide the required assurance to their public sector client.
A specialist will thoroughly review the contractor’s written contract and working practices and will liaise with the agency if any amendments are required.
They will then provide a ‘certificate’, which can be presented to the end client and gives full confirmation that the contractor is, in Qdos’ expert opinion, operating outside IR35.
The IR35 solution costs £150 + VAT.
UPDATE JUNE 2017: This product does not refer to the April 2017 off-payroll working in the public sector changes. Whilst this product can be used, contractors should first seek the advice of their public sector agency/client for action to take. Qdos provides solutions in relation to the new rules, however, this is the responsibility of the engager, not the contractor. Please visit the Qdos website for more information.
For ultimate peace of mind and defence in the event of an IR35 investigation, take out Qdos’ award-winning IR35 insurance – from just £99 per year. This covers up to £50,000 of professional representation and potential tax liabilities up to your chosen level of indemnity.