Urgent Contractor IR35 Coronavirus Question for the Government on Cash

2
16657
Contractor IR35 Coronavirus Question for Government
Contractor IR35 Coronavirus Question for Government

Urgent Contractor IR35 Coronavirus Question

Here is a succint contractor IR35 coronavirus question. Why are permanent employees laid off because of the coronavirus entitled to be kept on with the Government paying 80% of their salary (up to £2,500 a month) when contractors in the same situation will get nothing at all.

Questions on Contractors IR Coronavirus Question

  1. How does the Government treat contractors and why?
  2. What are the Government doing for contractors in this crisis?
  3. Are the UK’s Big Companies Doing Their Bit – Contractor IR35 Coronavirus Question?
  4. Are the UK’s Big Banks Helping this time round?
  5. How easy would it be for big companies to allow PSC contractors again?
  6. Why must the Government Clamp Down on blanket ban companies?
  7. Why the Government Must Answer Contractor IR35 Coronavirus question for big companies?
  8. Why the UK’s companies should take back their contractors – Contractor IR35 Coronavirus question?

How does the Government treat contractors and why

This is just another example of how the Government treats contractors and the self employed as second class citizens.

Theresa May and Philip Hammond once said prior to putting the new IR35 rules in the private sector in place:-

“It is an unfair anomaly that a self employed person earning £100,000 a year pays less tax than an employee earning £100,000 a year”

Future Prime Ministers and Chancellors believed exactly the same thing. This is what informed them in their future efforts to correct this ‘unfair anomaly”.

Why are contractors treated worse by Government – Contractor IR35 Coronavirus question

Well let me turn this statement around.

It is an unfair anomaly that a permanent employee earning £100,000 a year will receive £30,000 a year from the Government (£2,500) a month) if they are laid off because of the coronavirus and a self employed person will receive nothing”.

You see, Mrs May and Mr Hammond and all the others since, this is one of the reasons why it is not comparing like with like when you compare employees and contractors earning £100,000 a year.

What are the Government doing for contractors in this crisis

Treasury Minister, Steven Barclay, was repeatedly asked on Sky News on Saturday morning what the Government was doing for the self employed.

He obfuscated several times before saying that the Government had pushed backward by a year the implementation of IR35 in the private sector.

Hes aid later that it would be “operationally” hard to protect self-employed incomes.

He said the self-employed were being helped by measures such as the deferral of self-assessment tax requirements, payment holidays for mortgage payers and the strengthening of the welfare “safety net”.

That is the sum total of what they are doing for the self employed.

Doesn’t that really make you sick if you are contracting at one of this firms who will not let contractors work through their limited companies till April 2021.

Are the UK’s Big Companies Doing Their Bit – Contractor IR35 Coronavirus Question

While the whole country is being asked to do their bit during the coronavirus crisis, the main policy that the Government is putting in place to help contractors during the coronavirus pandemic is being ignored by such companies as HSBC, RBS, Lloyds, Virgin Media and GSK.

They are refusing to help their contractors through this crisis by not implementing the main Government tool for helping the self employed during this crisis.

Are the UK’s Big Banks Helping this time round

Remember the last financial crisis in 2008?

Remember how big banks like HSBC, RBS and Lloyds were the heroes of that crisis? Remember how they were so willing to do their bit to help the country?

Not!

Thank goodness that a foreign bank, Deutsche Bank, has implemented the Government policy to help contractors through the coronavirus crisis.

Deutsche Bank, Deutsche Bank Uber Alles – certainly Uber the big British Banks.

How easy would it be for big companies to allow PSC contractors again

And it was very easy to do. All they did was send out an email to their contractors saying that they would renew their contracts via their personal services companies – and that was it.

That’s all the other banks would have had to do too. The Government wanted them to do it.

One wouldn’t want to be stuck in the trenches with the board of these companies when you need everyone to stick together. These are the kind of people who, when the order came to go over the top, they would stay firmly in the trenches.

Why must the Government Clamp Down on blanket ban companies

If putting the new IR35 rules in the private sector back is to be the only Government policy to help contractors through the coronavirus crisis then Steven Barclay and Chancellor Rishi Sunak need to have a strong word with these companies who have shown through the credit crunch in 2008 and the coronavirus crisis on 2020 that they believe that the rules are for other people.

Shame on them!

Why the Government Must Answer Contractor IR35 Coronavirus question for big companies

It’s time for the Government to crack down on UK companies who won’t do their bit in this crisis. If keeping back the implementation of IR35 for a year is to be the sole Government policy to help contractors during this crisis then they need to give those selfish companies a good kick up the jacksie to tell them that their selfishness won’t be tolerated this time around.

Those companies sidestepping the Government’s only policy to help contractors should be told to revert to their old arrangements with contractors for the next year. They should also be told to take back contractors who have left or will leave shortly because of the IR35 changes.

Why the UK’s companies should take back their contractors – Contractor IR35 Coronavirus question

The crazy thing is that, while lots of businesses are shutting down because of the coronavirus crisis, the UK’s big companies actually have loads of work for those contractors they forced out.

That’s one more reason why, when funds are short and the Government will have to borrow heavily, that the Government should insist that the UK’s top companies follow the only policy that the Government have put in place to help contractors in this crisis.

Steve Barclay or Rishi Sunak or even Boris Johnson should go on TV and say that companies should revert to their old policies on contractors and IR35 for the next year. And I would consider heavy fines for those that don’t.

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

2 COMMENTS

  1. I’m a contractor myself. I disagree partially with this article. Please decide what you want. Either one chooses to fight IR35 or you decide to be treated like an employee and get government support like an employee. Please don’t try to have your cake and eat it.

  2. I totally dislike the way you ask questions and provide meaningless moany answers.
    However could some info be provided about what we are currently entitled to? I understand this broadly covers claiming the equivalent salary (and divs up to a max limit), late payments of Corp tax, self assessment tax and vat. However by spending this money accumulated to survive, we are only building future debt.
    Can you state via an informative article to contractors about how we can claim an out of work entitlement and what this is? Thanks!

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.