Background

From April 2017 individuals working through their own companies in the public sector are no longer responsible for deciding whether the intermediaries’ legislation (IR35) applies.  Instead, this responsibility lies with the public-sector engager (including universities), agency or third party that pays the worker’s intermediary.  The university must decide whether the rules apply to a contract and, if so, it must account for the liabilities through RTI and deduct and pay over the relevant tax and NIcs. This change in legislation represents a massive shift in the compliance burden from individuals and their personal service companies to the engaging party.

We are aware from discussion forum threads, taxation and PEG meetings and other sources that implementing the new rules has not been an easy process in the HE sector. Members may also be concerned to benchmark their institutions against the outcomes at others. This survey is designed to seek further information about members’ experiences on a more formal basis; the data collected will be analysed and, anonymised, drawn up into a report for members’ information that may also be used in sector discussions with HMRC as evidence in order, for example, to explain and demonstrate the difficulties being faced by universities in complying with the new legislation.

Please respond to the survey with as much information as possible; but, be assured, it is not expected that you will need to undertake significant time in gathering information to answer the questions. Where quantitative information is requested best estimates will suffice.


Your name (in case we have any queries to follow up with you):

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* 1. Your name (in case we have any queries to follow up with you):

Name of your university/institution (this will NOT be included in our report or in communications with HMRC).

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* 2. Name of your university/institution (this will NOT be included in our report or in communications with HMRC).

Was it difficult and/or time-consuming to prepare your institution in order to implement the new rules so that your day-to-day work was disrupted?

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* 3. Was it difficult and/or time-consuming to prepare your institution in order to implement the new rules so that your day-to-day work was disrupted?

What was the most difficult aspect of the preparation required?

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* 4. What was the most difficult aspect of the preparation required?

Has it been necessary to reorganise processes and procedures to deal with the new rules? 

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* 5. Has it been necessary to reorganise processes and procedures to deal with the new rules? 

Did it prove necessary to engage and pay for professional help as part of your preparation to deal with the new rules?

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* 6. Did it prove necessary to engage and pay for professional help as part of your preparation to deal with the new rules?

Has HMRC advice and guidance been adequate in terms of help in complying with the new rules?

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* 7. Has HMRC advice and guidance been adequate in terms of help in complying with the new rules?

Do you have confidence that HMRC's EES tool provides an adequate basis for decision making as required by the new rules?

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* 8. Do you have confidence that HMRC's EES tool provides an adequate basis for decision making as required by the new rules?

Did a particular department take ownership of the issue eg payroll, procurement, HR, finance, other?

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* 9. Did a particular department take ownership of the issue eg payroll, procurement, HR, finance, other?

Have there been a large number of disputes with contractors and/or their agents over determinations? Please comment on what have you found to be the most common issues and whether/how these disputes have been resolved.

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* 10. Have there been a large number of disputes with contractors and/or their agents over determinations? Please comment on what have you found to be the most common issues and whether/how these disputes have been resolved.

In terms of your population of contractors providing services via PSCs leading up to the introduction of the new rules in April 2017, how many did you need to investigate in order to consider if IR35 should apply?

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* 11. In terms of your population of contractors providing services via PSCs leading up to the introduction of the new rules in April 2017, how many did you need to investigate in order to consider if IR35 should apply?

How many contractors did you conclude fell within the scope of IR35?

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* 12. How many contractors did you conclude fell within the scope of IR35?

Have contractors you determined to be within the scope of IR35 increased or sought to increase their pay rates? If so, please provide details in the comments box regarding the percentage increase.

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* 13. Have contractors you determined to be within the scope of IR35 increased or sought to increase their pay rates? If so, please provide details in the comments box regarding the percentage increase.

Have the impacts to your institution of the new rules been focused in any work types in particular e.g. IT or generally across all roles? Please provide details of which areas in the comments box.

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* 14. Have the impacts to your institution of the new rules been focused in any work types in particular e.g. IT or generally across all roles? Please provide details of which areas in the comments box.

Has there been an increase in Fixed Term appointments or direct employment as a consequence of applying the new rules?

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* 15. Has there been an increase in Fixed Term appointments or direct employment as a consequence of applying the new rules?

Has the attrition rates of contractors changed as a consequence of the new rules? 

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* 16. Has the attrition rates of contractors changed as a consequence of the new rules? 


What is the most positive aspect to emerge in preparing for or in applying the new rules?

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What is the most positive aspect to emerge in preparing for or in applying the new rules?

What has been the most negative issue to deal with in applying the new rules?

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* 18. What has been the most negative issue to deal with in applying the new rules?

Do you have any other comments you would like to make regarding your experience of implementing the new IR35 rules and any ongoing issue you may have?

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* 19. Do you have any other comments you would like to make regarding your experience of implementing the new IR35 rules and any ongoing issue you may have?

Thank you for taking the time to answer these questions. 

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