HMRC have now published the final legislation relating to IR35 in the public sector. The related national insurance legislation has also been published. This is important information for your school, as you now need to know how workers are being engaged through your school.
If this is not adhered to then Schools could face paying an engaged workers tax and NIC contributions. Both of these will come into effect on 6 April 2017 and relate to payments made to intermediaries on or after that date, even where the services were provided before 6 April. In brief, the new rules provide that where the client is a public authority and an assignment is an Inside IR35 assignment, the fee payer (i.e. the public authority or the employment business where there is one in the supply chain) must deduct PAYE tax and NICs before paying the intermediary.
Flourish Education has taken the decision to no longer engage candidates through a limited company, partnership or those acting as a sole trader. All of our supplied workers will work either through Umbrella Companies where the Umbrella Company has deducted the relevant TAX and NIC’s contributions with no expenses or through Flourish Education's own PAYE system.Therefore the IR35 legislation will not have an impact on your school.
BIS Agency Worker regulations guidance
Supplementary guidance relating to agency supply teachers (please scroll down page to find the link once you have clicked on link below)