Will the Public Sector IR35 Rules Be Extended to the Private Sector?

5 July 2018

9 a.m. – 10:30 a.m. BST

Squire Patton Boggs

7 Devonshire Square
London
EC2M 4YH

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Does your business routinely engage consultants/contractors/freelancers who provide their services via their own personal service companies (PSCs)?

If yes, join us on Thursday 5 July 2018 when our tax and employment law experts will discuss HMRC’s proposals to make changes to the off-payroll working rules (commonly known as IR35) in the private sector.

In brief, the IR35 rules are designed to ensure that those individuals who work through a PSC who would have been employees if they were directly engaged, pay broadly the same employment taxes as if they were employed. Under the current private sector rules, the legislation requires the individual working through a PSC to determine whether or not they should be regarded as employed or self-employed. This is a good position for end-user clients, as they do not carry the risk of PAYE/NI non-compliance under IR35.

However, things might be about to change. It is well known that HMRC believes there is widespread non-compliance with IR35 in the private sector. It has, therefore, launched a consultation on how to tackle this. It seems likely that if new rules are introduced in the private sector, they will be along the lines of those that have applied to the public sector since April 2017. Under those rules, the end-user client (rather than the PSC) is required to determine whether IR35 applies and the responsibility for dealing with PAYE and NI where IR35 does apply rests on the payer of the service company (i.e. the end-user client or, if applicable, the agency rather than the PSC).

Ultimately, any new rules will have a major impact on private sector businesses that engage individuals through PSCs.

At this seminar, we will consider:

What IR35 is and why HMRC is consulting
How public sector reforms work and possible lessons for the private sector
HMRC’s proposals for change in the private sector – what any new rules may look like and what businesses should be thinking about
What this means for employment status more generally

This event is suitable for legal, HR and finance professionals, so please share this invitation with your colleagues.

We hope you can join us for what promises to be an engaging discussion.

There will be no charge for this event.

Refreshments will be provided.

Caroline Noblet London

Patrick Ford Manchester

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