Public Sector IR35 Changes April 2017

From April 2017, Contractors working on Public sector contracts are no longer responsible for determining their own IR35 status. The Public sector engager/end client will have to determine the IR35 status of a particular contract. If the contract is assessed to be inside IR35, the entity which pays the contractor’s limited company (most likely to be either the public sector body or a recruitment agency) will become responsible for deducting the resulting tax from payments made to the limited company and reporting these deductions through their own RTI processes.