Posted: Jul 24, 2019
As you may know, ourselves and Brookson One recently held an IR35 Breakfast Seminar, where we offered our services and advice on the changes being made to the current legislation.
The Payroll provider has sent us the following information regarding the most recent IR35 legislation update that you may find useful.
The draft legislation for the off-payroll changes was published on 11 July 2019. This draft legislation is very much as we expected and confirms that the proposed reform of IR35 will be implemented in April 2020 and will apply to all payments made from 6 April 2020 to off-payroll workers operating via a personal services company. One of the biggest challenges that the legislation will present to end hirers will be the requirement to provide a “status decision statement” to all impacted workers and meet the reasonable care threshold in coming to the conclusion on employment status mentioned within it.
Initial HMRC guidance can be found here.
End hirers that use off-payroll resource need to take action now to avoid this legislative change impacting their operational effectiveness and their flexible talent pool. Our Ticking Timebomb research indicated that 45% of businesses have not yet started to plan for these changes primarily due to uncertainty around what the rules will be. Now that we have the draft legislation this barrier has been removed and we would advise businesses to start their change management programme now. In doing so businesses can avoid making ill-judged, last-minute decisions, like implementing a blanket ban on contractors – a mistake which led to a loss of talent from public sector when the legislation was first introduced in 2017.