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Newsletter 398: New rules for Government contractors

by Newsletter Editor at 10:15 03/09/12 ( Shout99 Newsletter)

The Cabinet Office has released the new rules for Government Departments contracting with freelancers - and placed the onus on contractors to prove they are entitled to be remunerated outside IR35.

After much speculation and rumours, the new rules mean that public sector freelancers will have to show evidence that they are 'low risk' under the controversial HMRC's business entity tests; or, if not, that they are outside IR35 through another means, such as a contract review by HMRC; or prove payment is made under IR35. The Government has introduced the new regime after it was embarassed by media reports that some senior public sector workers were operating via their own companies as a means to mitigate their tax and NI bills. HMRC's business tests at heart of new rules for contractors Recruitment agencies are already reporting that the public sector is becoming a less attractive option for freelancers. Contractors turn backs on public sector ********************* Other news in Shout99 ********************* IR35 'investigation' ends in three weeks No need for new legislation to tackle off-payroll issue Hat-trick of wins for HMRC on tax avoidance Small firms rely on partner's help New tax return penalties sent to half a million people Be warned of aggressive tax avoidance schemes! Contractors forego holidays for work Supply teachers in demand as pay rate expectations rise In Ask An Expert, the professionals answer your latest questions, including that' P35 question; taking a Sabbatical; IR35 contract clauses; and pensions/salary. Letters from Freelancers opens up discussions on a number of subjects, including security clearance. ********************************************** Advertisement - Freelancer Outside IR35 (FO35) ********************************************** Advertisement Protection against disputes with HMRC on tax matters, including IR35, is available for £116.00 a year. Freelancers Outside IR35 (FO35) is a complete operating system for small businesses with guidance on compliance; draft contracts; a helpline; status assessments; and representation by Qdos Consulting in the event of a dispute with HMRC on tax; VAT; or IR35 issues. FO35 is available online for immediate cover for £116.00 a year. For more information or to order, see......Freelancers Outside IR35 (FO35). ******** Twitter ******** For the twitters and tweeters among our readers, Shout99 has joined the world of social media. You can follow our headline news on Twitter....www.twitter.com/Shout99Ltd ************************ Shout99 - Newsletter ************************ Please feel free to forward this newsletter to any other freelancer or small businesses who may be interested in news and information related to running a small business. You can subscribe to receive your own free copy of this newsletter on the home page of Shout99. -- Susie Hughes, Editor Newsletter 398 Shout99 - the network for freelancers www.shout99.com Tweet

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