Extension of IR35 rules may be an option

Posted 9th November 2017 in For Businesses For Workers

The recent public sector IR35 changes could be extending to include the private sector, claims a government official.

Mel Stride, financial secretary to the Treasury, speaking to the Financial Times explained it could be an option to ensure rules that are in applied to the public sector are carried over to private business in order to maintain fairness.

“The public sector has undergone a behavioural change which means we are seeing far fewer [workers] offer their services through service companies and yet the private sector is able to carry on with that behaviour unchecked,” he said.

Introduced in April, the new rules mean hirers with the public sector are responsible for determining the status of those supplying services via a Personal Services Company (PSC).

Government sources have implied that the controversial public sector IR35 changes could be extended to the private sector.

From April this year, changes meant that hirers in the public sector became responsible for determining the status of an assignment to supply services through a PSC.

A recent survey by agency group APSCo concluded 45 per cent of recruitment consultancies have seen an increase in costs of contractors within the public sector following the introduction of the new IR35 rules.

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