From 06 April, 2017 IR35 status for people working in the public sector will be determined by clients not agency, all contractor working in the public sector will be caught by IR35, the government will also be scrapping the five percent intermediary expenses and other expenses stated above.
• Pension payment
• Business travel (incurred during business duties)
• Subsistence (accommodation, meal when away from home
• Professional Indemnity Cover
• Payroll / Contractor Umbrella Services
Expenses Contractor Can Claim If Caught Under IR35
Contractor working for public sector will be automatically caught under IR35, contractor income will be subject to income tax and National Insurance, will not be able to claim five percent intermediary expenses and other expenses stated below
• Pension payment
• Business travel
• Subsistence
• Professional Indemnity Cover
If the Contractor operated through an Umbrella Company, not under SDC (Supervision Direction and Control), the contractor will be able to claim business mileage from Work to temporary place of work/clients site on income tax and national insurance contribution.
Contractor will also be able to claim travel from home to work, business travel, subsistence, professional Indemnity cover through P87 return/self-assessment tax return at end of the tax year on income tax not national insurance contribution.
If contractor is under SDC (Supervision Direction and Control), also a multi-site worker, the contractor can claim business mileage from Work to temporary place of work/clients site on income tax and national Contribution.
Contractor under SDC (Supervision Direction and Control) will also be able to claim subscription, training related to the contractor job through P87 return/self-assessment tax return at end of the tax year on income tax not national insurance contribution.
For more help contact our Contractor Umbrella who specialise in IR35 payroll on 01279 772966 or e-mail [email protected]