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17 January 2017 / Alastair Kendrick
Issue: 4583 / Categories: Comment & Analysis
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The government’s proposals for the taxation of off-payroll workers in the public sector.

KEY POINTS

  • New rules apply for off-payroll public sector workers from April 2017.
  • These follow the Treasury’s May 2012 review of tax arrangements of public sector appointees.
  • Under the new regime the department must consider 
    the cost of materials used by the worker.
  • Some workers may find themselves subject to the 
    IR35 rules.

The clampdown on off-payroll workers in the public sector will take effect from April 2017. The chancellor confirmed in last year’s autumn statement that the government will proceed with its original proposals covered in last summer’s consultation.

The new rules are aimed at workers who offer their services to the public sector through a personal service company. It does not take much imagination to predict that similar rules for the private sector will follow.

The...

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