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IR35 for Clients

Retaining net pay for existing contractors - essentially, we currently think that most negotiation between clients and contractors regarding pay post-April 2017 is going to be focused on the employers National Insurance costs associated with running a Personal Service Company whilst working within IR35 (if the assignment is assessed as falling within IR35). Read more.

Retaining existing contract personnel - current advice is for clients to identify key contractors and start talking about IR35 now, with a view to securing their retention. Read more.

Recruiting new contract personnel - clearly, if there is no movement upwards in contract rates to 'compensate' PCS contractors when working within IR35 then work in the public sector is going to seem much less attractive financially post-April 2017. Read more.

There could be substantial financial risk associated with converting from contract to permanent work with a contractor. Read more.

Contractors working for clients directly will come with risks attached - there are tax withholding and liability implications for clients where contractors currently work directly, as well as business process issues. Read more.

Will there be retrospective taxation associated with the new IR35 rules? - we are not yet clear on whether or not contractors could see retrospective tax charges for contract work previously considered outside of IR35 that comes within IR35 post April 2017. Read more.

Will contract assignments fall within or outside of IR35? - at the moment, our understanding is that the proposed Digital Tool used for assessment will have a focus on "substitution" Read more.