30 July 2015 
Amanda Darley, Head of Operations and Engagement
HMRC has issued a short 'discussion document' regarding IR35 (intermediaries legislation relating to personal services companies or 'PSCs'). The intention of the document is to gather some early ideas and proposals which could then form a full consultation. One suggestion of particular interest to universities (and all businesses) is HMRC's idea for "engagers to take on more of a role in ensuring that the right amount of employment taxes are paid". Under such plans "those who engage a worker through a PSC would need to consider whether or not IR35 applies (in the same way as they would need to consider whether a worker should be self-employed or actually be an employee), and, if so, deduct the correct amounts of income tax and NICs as they would for direct employees".
The document does concede that "the government recognises that this would increase the burden on engagers" and HMRC would therefore welcome the views of businesses on this aspect in particular. If this would affect your university then please do get in touch with Amanda to respond to the discussion document. We have prepared a template for responses which you can download here, then complete and return to Amanda. (You do not have to answer all questions). Please provide all responses by 10th September (please note that this is an earlier deadline than for the other consultations).
