The next step

To HMRC's ESS and guidance

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HMRC launches its ESS online tool

In the nick of time. From 6 April 2017 public sector organisations will be required to decide if contractors who work for them off their payroll are subject to the IR35 rules. HMRC promised an online tool to help. The “employment status service tool”, referred to by HMRC as the ESS, came online at the beginning of March and corresponding guidance has been published (see The next step ).

Who’s it for? While primarily intended for use by public sector bodies who use the services of off-payroll workers, the ESS is also set up for use by those who work for them. This could be via their own company, partnership or other intermediary such as an agency who places contractors (or their businesses) in work with a public sector body.

Tip. If you disagree with a public sector organisation or agency that has decided IR35 applies to your work, you can appeal to HMRC and use the ESS result to support your case.

For a link to HMRC’s ESS and guidance, visit http://tipsandadvice-tax.co.uk/download (TX 17.12.08).