The introduction of the IR35 off payroll rules marks a significant change in recruitment arrangements, necessitating different treatment of public and private sector contracts, and resulting in different considerations and additional costs when operating in the public sector.

Where the IR35 public sector rules are to be applied to a PSC, unless costs are agreed as being passed on to a public authority client, rates will need to be agreed to take account of the 13.8% employers’ NICs element and whether this is possible may depend upon contractual terms in place with the public authority client. Contracts may also need to address the new accounting processes, including net payments.

Our legal partner Lawspeed can assist with advice on alternative structures and/or contracts should this be required. Read more…