Bank of America IR35 Decision – No More PSC Contractors

Bank of America IR35 Decision Contractors
Bank of America IR35 Decision Contractors

Bank of America IR35 Decision

The Bank of America IR35 decision has been announced. They will no longer hire contractors operating through personal services companies. Not only that, those contractors currently contracting at the company via personal services companies will have to move to PAYE.

They have the choice of either going PAYE via their agencies or via umbrella companies.

There’s just one other option – leave.

This is happening at company after company now.

Contractor Questions on Bank of America IR35 Decision

  1. Why is this happening?
  2. Why can’t contractors use personal services companies?
  3. How will the Bank of America IR35 Decision affect the company?
  4. Why are the British Government prepared to wreck the UK economy?

Why is this happening

It was not supposed to happen this way.

What should have happened is that contractors would be assessed as to whether they were inside IR35 or outside. They had the option to do it via HMRC’s Check Employment Status for Tax test (CEST) or via another test.

Philip Hamond, when announcing this said that proper contractors and consultants would have no need to fear.

Of course they have something to fear when every goddam contractor in the company has to go PAYE. And it doesn’t matter if they are inside IR35 or not.

Why can’t contractors use personal services companies

Many companies are not even testing them. They are abolishing the use of personal services companies.

They are making all their contracts PAYE.

It was not supposed to happen this way but with the Government seeing how many more contractors are going to be caught inside their IR35 nets because companies are blanket banning PSC contractors, they are rubbing their hands in glee.

How will the Bank of America IR35 Decision affect the company

However, there is going to be a huge effect at all of the UK’s biggest companies. Companies are saying that this is a catastrophe. They will not be able to get their critical IT projects done on time and will take a huge hit over that.

One company had an emergency meeting when 40% of their contractors said they would not sit the CEST test.

One would have thought all those big companies would have more clout and lobbying power than they appear to have over this. It appears to be HMRC and his big consultancies that are pulling the strings of this little project.

Why are the British Government prepared to wreck the UK economy

And to get what is the equivalent of less than a tenth of a penny on income tax the Government is prepared to destroy the contracting profession, make the flexible worker marketplace far more rigid and cause long delays on critical IT projects at all our major companies.

Sajid Javid was right to call for the Government to ‘repeal the silly IR35 tax’ when he was MD of Deutsche Bank.

It’s getting sillier by the day and he has a high position in this asylum.

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