IR35 reforms in the Private Sector

6 months ago

I am sure we are all aware that the Budget report was released last week.

Although there were some positive news for the economy with more money being pumped into the NHS, highways etc. there was one point discussed that we have all been waiting for.

 

When are these due to come into play?

It was stated by Phillip Hammond that the IR35 reforms will be brought into the private sector in April 2020.

This decision has been made despite the reforms in the public sector being somewhat chaotic and badly managed.

The poor implementation of this reform still continues as we are seeing time and again, contractors winning cases against HMRC.

 

Who will be affected by the reform?

This reform will only effect large and medium sized businesses. There has been no clear indication of how HMRC are assessing business size but we will keep a close eye on this and update when we know more.

However, with this new reform only affecting large and medium businesses, the unbalanced playing field we currently have in the recruitment sector will only be worsened by the introduction of this reform.

If the new reform is based on the current model in the public sector it would refer to the end hirer as the decision maker however it could also refer to the fee payer i.e the agency.

 

What do we need to do to stay compliant?

We have time to get organised as an industry. NumberMill is the only payroll provider operating in the market that can offer the Protect model for company directors incorrectly judged to be inside IR35.

Protect is a solution that we have been utilising for some time in the public sector, since the introduction or the IR35 reforms to be exact.

 

What do we expect to happen in the market with the introduction of the reform?

We expect there will be a large swing into umbrella as happened with the public sector.

Be wary of non-compliant providers and guarantee independently assessed providers by only utilising FCSA accredited umbrellas.

For more information on this or any other legislation effecting you and your agency.

 

Call us on 0333 121 2001 or visit see our website for more information.

 


Published: 7th November  2018

Theo Parkinson

Theo Parkinson

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