Public Sector IR35 Reforms and Contingent Labour One

The government announced in the 2016 Autumn Statement that they intended to introduce changes to the IR35 Regulations and how they are applied in the Public Sector effective from April 2017. For any ‘in scope’ contracts the Public Sector body engaging the services will determine whether the assignment is inside or outside IR35.

RSL have received the following information regarding the upcoming reforms and how they will be implemented via the Contingent Labour One Framework:

  • The decision on whether an assignment is inside or outside of IR35 will be made by the Public Sector Contracting Body (CB).
  • The HMRC tool to be used to assist with decision making has still to be rolled out (expected early March).
  • CCS / Capita intend that the evidence of any out of scope decision must be the output of the HMRC tool.
  • HMRC have declared that they will ‘stand by the output of the tool provided that they agree with the input’.
  • The target for providing this decision is Friday 10th March.
  • For all assignments that sit outside, contracts will continue ‘as is’ and there will be no change to the contract.
  • For in scope assignments the current contracts will be terminated with effect from 31 Mar 17 and new contracts placed from 02 Apr 17.

For all inside IR35 assignments, RSL will only contract via an approved Umbrella Company post April 2017.