IR35 & The Apprenticeship Levy – Paying Our Candidates Fairly!

Published: Tuesday April 11 2017 by Lewis Rennison

IR35 Supply Teachers

This month has been an important one for agency workers and contractors working within the public sector. Firstly with the IR35 changes and secondly with the introduction of the Apprenticeship Levy.

IR35 Legislation Changes

"From April 2017 there are changes to the way the current intermediaries legislation (known as IR35) is applied to off-payroll working in the public sector. Where the rules apply, people who work in the public sector through an intermediary will pay employment taxes in a similar way to employees."

These changes will apply to:

  • public authorities who hire off-payroll contractors
  • public sector tax managers, payroll managers, human resources managers and procurement managers
  • agencies and third parties who supply contractors to the public sector
  • contractors who provide their services to a public authority through an intermediary

So what do these changes mean for you? 

If you are paid via PAYE, then these changes do not affect you and you need to take no further action.

However, all candidates paid via umbrella companies should look into their individual circumstances to make sure this is the most financially viable solution for you. Some agencies are passing the additional cost of recent legislative changes onto their agency workers. This is clearly completely unacceptable. Furthermore, some recruitment agencies and recruitment consultants get a financial bonus for recommending their candidate to the umbrella company - justteachers categorically DO NOT receive any bonuses from any umbrella companies.

 

justteachers have not increased any charges to either schools or candidates alike.  Once more - we never push our candidates to the umbrella solution, you have the choice to be either PAYE or Umbrella within IR35 legislation.

 

We advise all supply teachers, cover supervisors, TAs and support staff look into their individual circumstances and contact their umbrella company (if applicable). justteachers do not take ANY 'Kick Back' or 'Bonus' from umbrella companies so make sure the advice you get from your agency or umbrella company comes with your interest at heart and not the pockets of the consultant or the company! 

Interested in registering with justteachers for your choice of supply and permanent teaching jobs? Simply fill out your details here!