Coronavirus Job Retention Scheme extended to Public Sector Contractors

Posted on 3rd April 2020 by Streets

Image to represent Coronavirus Job Retention Scheme extended to Public Sector Contractors

This means than many doctors, nurses and IT contractors amongst others, will be able to access financial support. 

No further detail has been provided at this point in time as to whether similar support will be put in place across private sector contractors who provide services through their own Limited Company.

Many contractors operating through a Limited Company will be aware of IR35 and how, for some time, HM Revenue & Customs have looked to enforce these rules more effectively.

The measures of support being provided for both employees and contractors will therefore take into account the different tax regimes employees and contractors operate within. The Chancellor has already indicated that there will be an increase in tax for the Self-Employed when the Covid-19 crisis is over, due to the support that has been made available to those in Self-Employment.

The extension of the Coronavirus Job Retention Scheme is being coordinated by the Crown Commercial Service and the Cabinet Office has provided guidance and outlined the conditions the measures will cover. 

The Cabinet Office has stated by putting in place these measures its aim was to protect:

  • the livelihood of contingent workers and avoiding claims of unnecessary statutory sick pay (SSP) from the supply chain;
  • against the risk that some may attend work when they should be self-isolating, thereby potentially infecting wider teams and the broader general public;
  • against the risk of losing critical workers to jobs in other sectors because they are not getting paid; and
  • supplier revenue with the intention of keeping them solvent so they remain a part of our ongoing supply chain in the future

The Cabinet Office have made it clear that the announcement needs to be read in conjunction with the Procurement Policy Note 01/20 responding to Covid-19 and Procurement Policy Note 02/20 – supplier relief due to Covid-19.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.


The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.

Expert insight and news straight
to your inbox

Related Articles

Is it time to reflect on the culture of your organisation?

Having been involved in recruitment interviews recently, in which seemingly all applicants asked what the culture of the organisation was like, it did give rise to reflection on the same and what is meant by culture and how it affects the success or otherwise of an organisation. Organisational ...

Class 4 NICs who is liable?

Most self-employed people are required to pay Class 4 National Insurance contributions (NICs) if their profits are £12,570 or more a year. Class 4 NIC rates for the tax year 2024-25 are 6% (2023-24: 9%) for chargeable profits between £12,570 and

Post Transaction Valuation Checks

A Post Transaction Valuation Check (PTVC) can be requested from HMRC for an individual to work out a capital gains tax liability or for companies to calculate corporation tax liability on chargeable gains. The request for a PTVC should be made using

You might also be interested in...