IR35 - Are you getting the correct advice?
Paul Lloyd
K3 Capital Group are the UK's number 1 provider of Corporate Finance, Business Sales, M&A, Restructuring, Insolvency and R&D Tax Credits
What solutions are you seeing in the market to assist recruitment agencies manage the change in legislation coming in April 2020?
The change in rules next year mean that it will no longer be the Director of the Limited Company who decides their tax status, but will now be the end client's decision. To be crystal clear the rules for determining IR35 status and the 19 years of case law are not changing. A contractor that is genuinely outside of IR35 now should continue to be so in the future!
In the Public Sector changes in 2017 we saw a lot of end clients taking "blanket ban" decisions and the resulting lack of talent was clear as it became increasingly hard to hire contractors with the right skill set.
- Are clients planning on taking this approach?
- Have they considered the additional cost implications, and delays in projects?
- Have they considered the lack of resource?
- What competitive advantage will you hand to your competition if you cannot hire highly skilled workers?
I am now also seeing a lot of "so called" #ir35 experts popping up in the industry and offering solutions that allow a #contractor to complete a questionnaire and then insure the risk!
How are these newly crowned experts justifying that this is in the spirit of the legislation or that this will pass the "reasonable care" test set out by #HMRC in the new legislation?
Anyone considering these solutions should be asking:
- How does this work when the legislation states the end client must make the determination, not the contractor!
- How can a contractor comment on working practices before they have been on site?
- What if the contractor review passes but the client deems inside the role inside IR35 - this will just create arguments in the supply chain
- Why would you need tax loss insurance if you have done the review correct?
Any #recruitment #agencies looking to use these types of services should seek correct legal advice and ensure you are not putting your supply chain at #risk
Brookson have an SRA regulated law firm that has specialised in IR35 since its inception in 2000. Why trust a self proclaimed market expert when you can use a company with this level of experience and credibility?
Get in touch for free advice and education sessions - [email protected]