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Impact on contractors

  • Potentially significantly lower take home pay
  • No right of appeal once assignment is accepted
  • No employment rights
  • No statutory sickness benefits
  • No holiday pay

NumberMill work closely with HMRC

NumberMill are active Government and HMRC lobbyists. NumberMill regularly attend HMRC

“round table” consultation discussions. . NumberMill were one of the first to see the new digital

tool and are actively involved in it’s testing. This way, NumberMill can keep you alert to the

latest legislative changes

IR35 Public sector Digital Tool

NumberMill will be offering a service alongside their current IR35 review service to support

contractors, end hirers and agencies to ensure if the utilisation of a PSC is appropriate. Where

necessary they will facilitate PAYE deduction of taxes and NIC. Full RTI records will be made

available. Intermediary reporting will be handled by NumberMill

Insurance

Contractors engaged via PROTECT are covered by NumberMill’s insurance

Wide Choice of Contractor Services and Flexibility

As a firm of accountants NumberMill are able to offer a wide choice of services all with

PROTECT including;

Wide Choice of Agency Services

  • Management Accounts
  • Year end accounts
  • Interim Finance Director services
  • Treasury and fund raising
  • – Compliance Consultancy
  • Reviews
  • PSL advisory

Legislative Backdrop

All agencies are well aware of the huge deluge of legislation that has been introduced over recent years affecting the payment of contractors. These legislative changes have been an attempt by HMRC to raise standards in the sector, and of course to ensure that more taxes are collected and to stamp out tax evasion. Unfortunately, this has had the unintended consequence of confusing agencies and contractors, as the vast technical nature of the legislative changes is extremely di cult to navigate. Worse still, the aggressive intermediaries in the sector have fought back by introducing even more aggressive tax schemes, which are heavily disguised, putting both contractors and agencies at risk.

 

How are NumberMill able to PROTECT?

NumberMill are a genuine firm of ACCA and IPSE IR35 Qualified Practicing Accountants, who

were set up originally by Louise Rayner, herself a qualified accountant, and the former board

director of a number of recruitment agencies and responsible for one of the first travel and

subsistence schemes for more than 40,000 contractors. NumberMill bases its service on

technical understanding of legislation, partnership with legal employment experts and by offering a wide range of compliant contractor based services. NumberMill focusses on maintaining margin, whilst minimising cost in the contractor supply chain, maximising our client’s margin and providing end client happy service to contractors.

 

PSC (Personal Service Company contractors)

From April 2017 the legislation will determine how payments to a PSC operating in the Public Sector

can be paid. Relevant things to consider are;

  • Agencies need to work with their Public Sector partners to ensure that they can be engaged via a PSC and be paid gross.
  • Agencies may need to renegotiate rates to compensate contractors as their take home pay may be significantly adversely affected.
  • All current contractors working in the Public Sector will need to have their position assessed
  • NumberMill are able to help with these discussions and can provide tailored calculators to highlight the impact on contractor take home pay
  • Employers NI and Apprenticeship levy needs to be paid by the “Fee Payer” over and above the rate offered
  • Recruitment companies will need to request status be clarified by the Public Sector. It is only the recruitment company who can ask these questions.