Contractors IR35 Status Now Is In Their Own Hands Again

0
303
Contractors IR35 Status Now
Contractors IR35 Status Now

Contractors IR35 Status Now

Because the Government has delayed the IR35 changes for a year, contractors IR35 status now is back in their own hands. Contractors will be delighted with this. Although it has its own dangers too.

When the Government delayed the off payroll implementation for a year they were also cancelling Chapter 10. This was what pushed the responsibility of determining a contractors IR35 status now onto those hiring contractors.

Questions on Contractors IR35 Status Now

  1. Who is responsible for contractors IR35 Status now?
  2. Are companies reversing their blanket bans on PSC contractors?
  3. When will we know what companies will do about contractors IR35 status now?
  4. How soon will we know what companies will do?

Who is responsible for contractors IR35 Status Now

As this has now been postponed it is Chapter 8 which now applies again. And Chapter 8 says it is contractors who will be responsible for determining their own IR35 statuses. This will apply till at least April 2021.

Of course, companies can refuse to accept this. They can still say they don’t want to hire contractors who operate via personal services companies. That is their prerogative.

Are companies reversing their blanket bans on PSC contractors

However, with a growing number of companies deciding to reverse their blanket ban policies, those companies keeping them will find it harder and harder to find contractors who will work under a PAYE basis.

It all depends on how many companies decide to reverse. If it is just a trickle then those companies that blanket banned contractors using PSCs will probably continue with that.

However, if there is a cascade of companies reverting to taking PSC contractors for the next year then those blanket banning companies will be hit commercially if they are competing for contractors against rival companies who are allowing contractors to operate via their personal services companies.

When will we know what companies will do about contractors IR35 status now

The next few days should prove very interesting indeed. As April approaches rapidly, companies will have to make rapid decisions.

Some companies who have forced their contractors into PAYE may not want to reverse that. But they may be forced to allow new hires to use their PSCs.

However, they may find their PAYE contractors dumping them for other companies which will hire PSC contractors.

How soon will we know what companies will do

I would think that things will change very fast. Companies will have to make decisions in the next few days to continue or to revert.

Already we hear that Deutsch Bank and BAE Systems are reverting. But we also hear that HSBC and Lloyds Bank will not.

It’s all to play for. The decisions our major companies make over the next few days will have a major impact on those companies over the next year. And hey have Brexit and the coronavirus to cope with as well.

So, who will revert and who will not?

What will happen with contractors IR35 status now?

Watch this space!

Please share this article using the social media buttons at the top and bottom of the page.

For all critical IR35 news and advice for contractors click on IR35 News.

Ad – Contractor Services

Many private sector contractors are likely to be told by their client company either that they must operate as an off-payroll employee or join an umbrella company. It’s time to plan for that now.

They need to look at umbrellas ASAP.

Do you need an umbrella company that is right for you and returns you most?  Fill out the form below to receive a call today.

For all necessary business insurance, including IR35, click on Business Insurance for Contractors

Your Name (required)

Your Email (required)

Your Telephone (required)

Your Daily Rate (required)

Please Fill in Answer to Simple Quiz Question

Comments

ad

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.