IR35 legislation has been around for many years and until now has been the responsibility of the contractor to determine whether they were within the rules on disguised employment. If they provide their services through a personal service company under circumstances where they would be employees if they had contracted directly with the client then they are caught by IR35 and subject to tax and national insurance on a deemed payment.
From April 2017 new legislation was introduced meaning that where the service is provided to a public sector employer, either directly or through an intermediary, then it will be the responsibility of the public sector employer to decide whether IR35 applies and inform the contractor or intermediary. It they deem that the contract falls within IR35 then they or the intermediary must deduct tax and national insurance and account working in the public sector or these through their payroll real time information (RTI) submissions.
Any contractor working for a public sector employer should now have been notified of their employment status. This will affect both the amount of the payment received from their employer (or intermediary) and also what travel expenses that can be claimed.
If they are affected then they need to assess the cash implications to their business.