IR35: upcoming changes to off payroll working in the public sector

Alastair Kendrick, tax director at MHA Macintyre Hudson, examines the rationale and function of changes to IR35 for public sector organisations, set to come in from April 2017  

The government have announced their intention to tighten up the use of workers off payroll within the public sector and issued a detailed consultation document on the 26 May 2016. This is aimed at those who offer their services to the public sector via a personal service company. The consultation period ended on the 18 August 2016 and we are expecting an announcement in the Autumn Statement of changes to the rules which will come into force at April 2017. It is likely that following the introduction within the public sector we can expect to see similar rules introduced for the private sector.

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