IR35 public sector changes are causing delays on London Underground renewal

(2 minutes to read)

From April 6th 2017, new rules were put in place regarding contractors working in the public sector and their IR35 status. This has meant that many contractors are now choosing to work in the private sector instead, which has resulted in major delays with the renewal of the London Underground.

With the IR35 public sector reform resulting in many contractors choosing to look else where for work, new data has revealed that these changes have had a significant impact on the London Underground renewal.

Research from TfL has confirmed that the severe delays to the renewal London Underground rolling stock is due to the changes to the IR35 public sector rules.

The data shows that this delay has been caused by the number of weld project contractors leaving, which has resulted in the project running more than 90 days late.

The TfL’s explanation of the delay says:

A significant number of critical weld project employees left TfL as a result of IR35 – a revised tax legislation affecting public sector contractors. We are currently working on mitigations to reduce the impact on the project.

The news comes in the same week that medical professionals are threatening legal action over IR35 rules in the NHS.

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The Association of Independent Professionals and the Self-Employed (IPSE) have responded to this latest news.

Andrew Chamberlain, IPSE’s Deputy Director of Policy said, “This report confirms what we have known all along. The changes to IR35 have damaged the ability of public sector organisations to attract the talent they need and deliver projects on time.”

“There is mounting evidence that the IR35 changes in the public sector are causing significant disruption. IPSE is renewing its call for a comprehensive review of the impact of this measure across the public sector.”

To find out more about contracting please contact Jaime on 01442 759100 or email jaime.thorpe@dolanaccountancy.com

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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