Public Sector Bulletin - 7 April 2017

Friday, 7th April 2017

New financial year = new tax burden for public authorities

On 6 April 2017 changes to IR35 came into effect which specifically affect public sector bodies.

Public authorities should be aware that, as from 6 April 2017, the rules have changed within the public sector, such that responsibility for deciding whether IR35 applies, and therefore whether tax and National Insurance contributions need to be made, shifts from the Intermediary to the public sector Client.

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What will the current digital infrastructure strategy plans mean for local authorities?

In the recent Spring Budget, the Government announced the first steps of its strategy to invest in digital infrastructure to support the next generation of mobile and broadband technology. This will take the form of £16 million for 5G facilities, and £200 million for full-fibre broadband, the plans will involve a collaboration between central Government, the private sector and local authorities.

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National Insurance reforms: a challenge yet to come for the public sector?

A lot of noise was made about the Government's U-turn on proposals to change the National Insurance Contributions (NICs) paid by the self-employed. When you read beyond the headlines, however, the U-turn may in reality be more of a delay to proposals.

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Key Contact

Elizabeth Gibson

Partner and Head of Public Sector

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+44 (0)1392 333802

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