IR35 Off Payroll Working to the Private Sector Suspended
18th March 2020
The British government last night announced a last-minute u turn on the IR35 off payroll regulations in the private sector due to the Corona Virus Covid19, Steve Barclay Treasury secretary announced the decision in the house of commons last night. The Government stated “This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals. This is a deferral, not a cancellation and the Government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company pay broadly the same tax as those employed directly.”
Watch this space…
IR35 Regulations - April 6th 2020
The new IR35 regulations could deprive British companies of access to the best talent when required, it will strip businesses from their current dynamic of hiring the best people with the best skills as needed.
In some European countries, companies have been cumbersome and unable to change and react quickly as they are weighed down with permanent employees (jobs for life). UK businesses have always have been the envy of many countries as we are reactive, light and agile utilising the contract market ensuring very best skills when required, we pioneered it.
Surely this will also affect regulatory compliance for many institutions that rely on these specialist skills to meet certain standards, if a blanket “everybody in” attitude is adopted. We have seen around 90% of our UK contract base axed with the roles going abroad, our European is business far busier than usual some roles released from the client UK office to us to work for the same client but in Ireland or Belgium.
Surely the government can see that this will reduce their revenues quite considerably and shrink the economy. Our contractor management service where we step in between the end client and direct workers for their compliance and limit possible employment legislation is experiencing very high demand currently perhaps due to the new legislation.
Not great for the industry or the country.