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.


Contracting in Europe Post Brexit

In the UK there are currently 2 million freelancers who make a valuable contribution of almost £300 billion a year to our economy. As the the criteria for leaving the EU becomes clearer the cloud of uncertainty is beginning to lift, contractors and freelancers will no longer be left scratching their heads over what life outside of Europe will mean for them.

VAT

The reverse charge mechanism will remain until the 31/12/2020, after which the UK businesses providing these services the VAT will be out of Scope, Zero rated.

Freedom of movement

Working: This is not yet clear as there is uncertainty if UK nationals will be able to work in the EU zone for long periods without restrictions

At Skillbase Group, we provide Telecoms and IT contract recruitment services and contractor management solutions to corporations across Europe and Globally. Because of our substantial global reach, we are looking to maintain our presence in the European zone with our office in Galway, Republic of Ireland to ensure stability and maintain our client’s growth.


Why recruitment and selection is important to an organisation

Recruitment and the way we recruit now compared to a few years ago has changed. It isn’t easy. Recruitment is all about putting the right talent, in the right job, and at the right time. Recruiting new employees is a costly process and if not done properly, this could prevent the business from growing, affect your reputation, negatively impact your profits and more. So why is recruitment and selection so important to an organisation?

Well, recruitment is vital for success. Good people confer a performance advantage and there is really nothing that will make more of an impact than hiring the very best talent you can find and afford. A study by The Boston Consulting Group found that not only do companies that are committed to investing in their people perform better economically, but that recruiting is probably the most important human resources function when it comes to enjoying better economic performance so it’s safe to say that recruitment is definitely an asset that is worthy of continual investment.

When you are running a business, your success largely depends on having a team of employees who know how to get the job done. Finding the right talent that is not only good at their job but will also stick around is crucial, and makes your organisations’ recruitment and selection processes all the more important. Recruitment can be a hectic process for any business, but an effective recruitment process and a strong selection policy is crucial for significantly reducing your employee turnover and ensuring that you hire the very best candidates for the job.

Companies that are good at hiring talent experience two times better profit margins than those who are not as capable of hiring the best people. The lead driving factor behind a companies success is the people and access to the best people can only be achieved through successful recruitment. When recruiting, it is important that you list all of the skills required of the job to help ensure that you fill the position with the right candidate. Employee referral programmes can also be a highly effective and important part of successful recruitment when it comes to hiring the best talent you can find.

While recruitment attracts applicants, selection reduces the number of applicants to a number that is more manageable and involves screening out those that are unsuitable for the job. Like with recruitment, this is vital in reducing the costs and poor performance resulting from bad hires, and ensuring that only the most suitable and qualified candidates are chosen to fill the empty post. It is also vital for assessing the behaviour of potential employees and gives the hiring team the opportunity to assess candidates to ensure that they find the individual who will adapt best to the demands of the job.

In summary, recruitment is a vital and important process when it comes to not only finding quality candidates but also taking the steps required to save the time, resources and money that result from bad hires. Taking the time to really focus on your recruitment and selection process will help avoid the issues that can arise.

Skillbase Group combines both global reach and management know-how for a specialist, bespoke recruiting solutions. It doesn’t matter what size project you are staffing, how complicated the job is or where you are located – Skillbase Group can step in and deliver change immediately. If you want to know more about how Skillbase Group can help you, please contact us using the details below:

Telephone UK +44 (0)1322 310 333

The Brewhouse, Old Bexley Business Park, Bourne Road, Bexley, Kent, DA5 1LR, United Kingdom

Email info@skillbasegroup.com


What impact could Brexit have on contract Roles and freelancers in the UK and Europe?

In the UK there are currently 2 million freelancers who make a valuable contribution of almost £300 billion a year to our economy. As the Brexit deadlock drags on and the cloud of uncertainty remains over UK businesses, contractors and freelancers are left scratching their heads over what life outside of Europe will mean for them.

The new departure date is set for October 31st, and a no-deal scenario is looking more and more possible. When you combine this with the fact that the deal already in play did not grant the free movement of services, freelancers are likely looking at a hard Brexit no matter what the mechanism of our exit is. But what exactly does this mean for the 2 million contractors in the UK?

Mobility

Telecommunication, IT, Oil and Gas are most likely to be affected because they tend to work internationally. For contractors who work in the UK, if you have contracts in the EU or with firms that are moving away as a result of Brexit, you’re probably going to have a trickier time. A no deal would stop the free movement of people, impacting contractors from the UK and EU. Although, even if there is a hard Brexit without freedom of movement, for short contracts it's expected that countries won't place barriers for temporary working visas.

30% of contractors are currently working inside the EU. WTO rules, which would be in place in a no deal, unfortunately don’t cover the trade of services which has created uncertainty for the future. For UK freelancers working in the EU, your rights will vary from country to country. We recommend you check with the country you’re in on whether any provisions have been made for UK citizens in the event of a no-deal Brexit. Some countries are now recommending that UK citizens register as residents in light of the possibility of a no-deal Brexit.

VAT

In the event of a no-deal Brexit, UK freelancers working in the EU won’t be able to access the EU VAT refund system, which will create admin delays and impact cash flow. Freelancers can still access the EU’s VAT number validation system, but UK VAT registrations will no longer exist. Freelancers may be liable to pay VAT to the relevant authority in the country they’re working in.

Skills

However, it’s not all doom and gloom; EU nations are returning home in sight of an uncertain future, and as a result, skills gaps are popping up that need to be filled. Contractors will do just that. Organisations are likely to adopt the same approach, putting off new hires until they can form a strategy to rely upon contractors instead – a similar pattern cropped up after the 2008 recession. One particular area that will increase in contract roles and freelancers is legal – businesses, especially ones with a global reach, will need extra legal advice to deal with the finite and complex changes Brexit will bring to business and trade. Brexit may also lead to a change in employment rights and Agency Workers Regulations.

Predicting what will happen with Brexit is extremely difficult; you can only try to have more than one contingency plan and be prepared for the worst-case scenario. It will undoubtedly have an adverse effect on contractors and freelancers, but as discussed – it’s not all negative!

Here at Skillbase Group, we provide Telecoms and IT contract recruitment services and contractor management solutions to corporations across Europe and Globally. Because of our substantial global reach, we are looking to maintain our presence in the European zone with our office in Galway, Republic of Ireland. So with the uncertainty of Brexit looming over contractors and freelancers, we are doing our best to ensure stability and maintain our client’s growth.


Our re-brand to Skillbase Group

Following a year of planning and implementing new technology Skillbase Contractor Management Services and Skillbase Consulting are excited to announce the launch of our re-brand to Skillbase Group.

After the success of our thriving contract and permanent recruitment service, Skillbase Group has decided to band together with our workforce management service and re-market under one collective brand.

Here is a short video about how we help our clients manage global contingency workers.

Alongside our new branding and because of our strong global reach, Skillbase are looking to maintain our presence in the European zone with the opening of a new company and office in Galway, Republic of Ireland.

This is a really exciting time for us at Skillbase Group. With Brexit looming and a European presence we can take advantage of the development of new internal technologies, totally new branding and the expertise of our company to come together in one thriving place for our global customers.

Background

Skillbase Group provide Telecoms and IT contract recruitment services to many corporations across Europe and Globally. 2019 marks their 18th year of trading.

Skillbase Consulting was initially set up in 2001 to provide contract recruitment to the Global Telecoms Sector. As they began to manage directly sourced workers on behalf of their clients (portage), their team established Skillbase Contractor Management Services (SCMS) in 2012. From this, Skillbase has gone from strength to strength, especially over the last two years whereby they now manage directly sourced consultants all over the world.

As part of our rebranding, over the last 24 months we have invested in an all new internal technology with RDP Pro from the Access Group and achieved ISO 27001 accreditation. This is to facilitate the growth we have experienced particularly in the management of contingency workers service.