Not surprisingly, momentum continues to build at pace around IR35.
Where agencies are engaging with their End Clients, we are seeing an increase of PSCs/limited contractors setting up ready to be paid Umbrella or CIS. Last week alone we paid an additional several hundred Umbrella contractors moving over from their own limited company/PSC. This is mainly down to clear communication, planning and preparation throughout the supply chain.
This week we have spoken to over 300 PSC/limited contractors alone and they are starting to get frustrated with the position & communication from the End Client.
So many of these contractors are getting mixed messages and are reaching out for reassurance and the options available to them in April. Around 50% of these are also waiting to see if any other information will be announced in the budget on 3rd March in the hope that IR35 reforms are postponed.
For what it’s worth, the chances of this are close to zero; the Chancellor needs the cash!
As a reminder, on a practical note, unfortunately, where End Clients put their head in the sand, there are going to be thousands of PSCs/limited contractors switching at the last minute which will result in a potentially trickier transition to another solution/Service Provider.
HMRC have published information supporting businesses to comply with changes to the off-payroll working rules (IR35); it gives details as to how HMRC will ‘police’ compliance BUT does NOT change the fundamentals click here to review.
In addition, Robert Burton, Senior Tax Manager at EY has written an article regarding the HMRC compliance strategy (as referred to above!) Click here to review.
As momentum is building ADVANCE have held webinars, contractor workshops, Q&A sessions, training sessions regarding our Umbrella & CIS solutions and IR35 training including accessing our IR35 status tool throughout this week. We are here to support you. We are here to lend our support on whatever ‘level’ you may require.
If there is anything we can help you or your teams with, please don’t hesitate to get in touch with your Client Relationship Manager on 01244 564 564, we are all in the office at the end of the phone.
Please don’t hesitate to let us know where we can help.
ADVANCE
