IR35 tax changes for agency workers and contractors Guide

 

2. Engaging new workers

The tax status of any future worker will be determined by the role which they are performing, and those roles already in the Comensura catalogue will have been classified. Therefore, when a manager raises an order for one of these roles on CNET, they will not have to decide whether or not the role is subject to PAYE tax.

Where the outcome of these checks determines that the contract is outside IR35, the services should be procured compliantly through use of the Bloom contract. This decision will need to be signed off by an Executive Director, as an incorrect assessment will be costly financially and in reputational damage.  

There are two types of contract which can fall outside of IR35:-

1. Fixed Price - This contract details milestones and outcomes, uses’ stage payments, and is used to pay Contractors for what they do.
2. Time and Materials - This contract is used to pay for what someone knows, rather than what they do. Examples include Lawyers, Tax Specialists and Medical Experts.

• Public Sector reform of intermediaries legislation

Contractors or personal service companies who invoice the council directly 

If you have any incumbent contractors or engage with any personal service companies directly (not through Comensura or Bloom) please contact david.worrall@cheshireeast.gov.uk.