IR35 changes April 2020

DoctorStrange

stphnstevey

3 months away and there is not definitive guidance. Politicians suggesting review during election promises. Many still expecting changes. Agencies some still not even aware, let alone prepared. Some companies boycotting all freelancers (HSBC, GSK etc) so don't fall foul of tax responsibilities

So YES, complete MESS, what more should expect from government?

I'm not sure what you're actually looking for in terms of guidance.

As it stands just now, the reforms will be included in they next budget and made live in April. What do you need before then?

The Govt isn't going to (and can't) tell those companies boycotting contractors to continue using them, and it's up to the agencies and the market in general to react to the new rules.

If you post specific questions about your circumstance we can maybe help, but I'm not sure there's much use in hoping from anything from Govt.

lisyloo

CanadianDream wrote: »

I forgot to mention that going perm at current client also applies although I wonder if it would apply if they offered a different position?


It's a shame really, I currently work for a great company.

It’s dependent on the specific role/contract.
So yes the same client could have roles inside IR35 and outside IR35.
The danger is in continuing with the same role/contract not specifically the same client.

The client could assist for example by altering their role/contract.
What we’ve seen so far is a very risk averse approach from some clients with a number offering a choice of umbrella/perm/leave.

lisyloo

There are some oral questions in parliament on Tuesday 7th to Javid mainly about the timetable for IR35 review.

There is much advice to plan as if it’s going to go ahead as planned and not pin your hopes on any delay/changes which have so far not been forthcoming.

eagertolearn

I had been contracting since March 2016 (first 3 years at GSK so got the bullying letter from HMRC). I have decided to stop work altogether as I do not want the hassle of in/out/umbrella/employer NI etc etc. I have never done anything dodgy (big expenses, loan charge etc.) so have paid my Corporation Tax, Dividend Tax and VAT, so I don't expect any big bills, but I have already had to pay a tax adviser to respond to the letter (no reply from HMRC so far). I am lucky in that I can stop but I don't think this is good for UK plc.

lisyloo

My husband may stop work prematurely.
He will be paying a lot less tax so I can’t see how this benefits the UK.

In the meantime my job and place of residence is dependent on the final decision.
Very frustrating that it’s not been organised better.

isplumm

Hi

I quit contracting 3 years ago because of IR35 - most of the major companies such as SSE and banks are getting rid of their contractors - so at the moment the future for contracting seems dire ... but once April is out of the way & things settle down, things may improve.

Mark

CanadianDream

I don't think things will improve because more people will refuse contracting work.


I always get contacted by recruiters with inside IR35 contracts, it seems to me they are struggling to find people and even when they do, retention is so low.


I see the same IR35 contracts on job boards months later.

isplumm

CanadianDream wrote: »

I don't think things will improve because more people will refuse contracting work.


I always get contacted by recruiters with inside IR35 contracts, it seems to me they are struggling to find people and even when they do, retention is so low.


I see the same IR35 contracts on job boards months later.

I was just thinking of what happened in the public sector - rates went up to compensate for being inside ir35.

I am actually looking for a role - most of the roles I am looking at are inside IR35 - but rates are higher than when I was last a contractor.

Mark

noobinvestor

The rates here in the West Midlands have gone down and some have stayed the same.

csgohan4

The government ultimate aim is to force most of the contractors to be paye, the gap has clearly narrowed over the last 10 years, first with dividend allowance/ Tax and then tightening of the IR35

It no longer used to be as tax efficient now as it was previously, which is a shame, the flexibility was great for both the contractor and employer.

Nothing wrong with being tax efficient legally.