[Press release from Charterhouse Group International, concerning Medical Workers and IR35.]
Charterhouse Group International has been working together with HM Revenue and Customs in order to produce a set of processes and procedures that provide certainty over a contractors working status. These new processes and procedures were introduced on 6th April 2005.
The personal service company legislation, commonly known as IR35, looks at all the factors surrounding an individual’s working arrangements. It imputes a hypothetical contract with up to three constituent parts; the contractor to service provider company contract; the service provider company to agency contract; thirdly the agency to end client contract.
The Charterhouse Group International Contract Status Questionnaire (CSQ), developed in conjunction with HM Revenue and Customs, asks eight multiple choice questions to get at the underlying factors that are key to determining whether an individual contractor is working inside or outside IR35. During the discussions with HM Revenue and Customs it was agreed that an individual’s working arrangements, as summarised by the results of the CSQ, would determine whether the contractor was working inside or outside IR35.
Specific industries were considered during negotiations. At no stage did HM Revenue and Customs suggest that individual contractors working in the public sector or NHS, would be unable to benefit from using Charterhouse Group International’s product range provided their individual working arrangements, as summarised by the results of the CSQ, showed the contractor to be working outside IR35.
Charterhouse Group International can confirm, however, that HM Revenue and Customs are increasingly focusing on service providers and agencies using IR35 friendly solutions. This increased scrutiny of the contractor’s working arrangements has been ongoing for some time. As a result of the success of these operations, additional Revenue resource has been allocated to this area.
Agencies, contractors and end clients should therefore seek additional comfort about their contractors’ working arrangements in order to confirm that individuals continue to work outside IR35. In our view this comfort is achieved by the use of Charterhouse’s contracts and using and passing our Contract Status Questionnaire. Once a contractor has completed these stages, and provided their working arrangements continue to reflect the answers on the contract status questionnaire, HM Revenue and Customs have given Charterhouse their assurance that the individual will be considered as working outside IR35.
This statement has been issued by Charterhouse Group International Plc on the 23rd June 2005. All information was correct at the time of publishing. Every reasonable care has been taken to ensure accuracy of information; however; information may change over time and we therefore reserve the right to amend and update our response as appropriate.
Learn more about Charterhouse Group International Plc; visit www.charterhouseplc.com