Associated British Foods IR35 Decision – All Contractors will be PAYE – No PSCs

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Associated British Foods IR35 Decision
Associated British Foods IR35 Decision

Associated British Foods IR35 Decision

The Associated British Foods IR35 decision is announced to its contractors. All its contractors must be PAYE in future. This will apply across the group.

ABF are one of the UK’s biggest companies. This is yet another domino to fall.

It could all finish up as the end of contracting as we know it.

Contractor Questions About Associated British Foods IR35 Decision

  1. How can the contracting profession survive this IR35 blow?
  2. Which companies are operating blanket bans on PSC contractors?
  3. What will companies yet to announce do about the IR35 changes?
  4. Why is the Associated British Foods IR35 decision being replicated elsewhere?
  5. Will the UK contracting profession survive this?

How can the contracting profession survive this IR35 blow

For the contracting profession to survive there must be a decent amount of companies who continue to allow contractors to operate outside IR35 via personal service companies.

So far this is not showing up. There are no major announcements that any companies are going to continue to use personal service companies so far.

Which companies are operating blanket bans on PSC contractors

All the major banks have gone for blanket bans on PSC contractors as have retailers like Sainsbury’s and Tesco. In the telecoms sector Vodafone is another domino to have fallen.

The only hope is that it’s only those who are going to blanket ban contractors who have to announce this early in order to prepare for the big change.

What will companies yet to announce do about the IR35 changes

It could be that those who are not going to blanket ban contractors can announce this closer to the time as this needs less preparation.

However, the way things are going this feels like a very large dollop of wishful thinking.

Why is the Associated British Foods IR35 decision being replicated elsewhere

Associated British Foods IR35 decision appears to be being replicated all the way across British industry.

Why don’t they, and other top UK companies, simply test their contractors to see if they are inside IR35 or outside IR35.

That was what the Government intended.

This is why HMRC set up their Check Employment Status for Tax IR35 test.

Will the UK contracting profession survive this

It was never intended that companies would effectively end contracting at their companies. Do they know something that we don’t know? Has the Government tipped them the wink about further IR35 legislation coming up?

Why are so many of our major companies self harming themselves?

What’s the reason for the Associated British Foods IR35 decision?

It’s all very odd!

It doesn’t seem to make sense.

However, it s all very ominous for the UK contracting profession.

Will there be one after April 2020?

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    1 COMMENT

    1. I think this person is right to leave. His company has built up know-how and it could and should choose not to provide that going forward I.E. There is no MOO to do so. If the client chooses to terminate the contract at a potential loss of knowledge then that is a cost they will need to pay to replace. Even if the company or company contractor makes that knowledge available for a different price elsewhere that is better than letting the previous client manipulate the system for no cost.

      I am cost to retirement, and I don’t really want to be an employee again.

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