Brexit IR35 Mess
We are going to be in for one hell of a Brexit IR35 mess as companies tell contract road hauliers that they will no longer allow them to use their personal services companies.
As a result many freelance road hauliers are looking for jobs elsewhere other than their own profession.
Contractor Questions on Brexit IR35 Mess
- What has caused the problems in the road haulier freelance market?
- Why are road haulage companies getting rid of their contractors say the Government?
- Why are road haulage companies really getting rid of their contractors?
- What has cause this awful Brexit IR35 Mess?
- Why is the Brexit IR35 Mess causing contract road hauliers to leave the profession?
What has caused the problems in the road haulier freelance market
Said one freelance road haulier “this has really damaged the haulage industry where many self employed drivers working through Ltd companies for different clients and agencies have now found themselves dumped by their clients.
“Those clients, understandably, are unwilling to take any risks. So, many contract hauliers, like me, are now scraping round for low paid jobs in other sectors.
“This is likely to result in even more drivers leaving the already struggling industry for less responsible jobs for the same pay.”
Why are road haulage companies getting rid of their contractors say the Government
So, why are all those road haulage companies suddenly dumping their contractors?
Here’s what the Government say the reason is:-
“The Government is aware that some organisations are considering whether PSCs are the best way to engage contractors who are working like employees.
“Businesses reported that where individuals had been moved onto payroll, this was a result of a review of the structure of their workforce”.
So, according to the Government, all at the same time, companies up and down the land suddenly decided, after a review, that their business model was not good enough and so moved to a business model where they don’t use contractors who operate via personal services companies.
Why are road haulage companies really getting rid of their contractors
What a load of old tosh!
The reason they are doing it is fear of massive fines from HMRC if they got their contractor assessments wrong.
Despite following all HMRC’s directions, the NHS were fined £4.3m by HMRC for mis-use of the CEST tool.
Unlike, say, IT contractors, those road haulage contractors have several client companies that they do work for. These are genuine freelancers, in business on their own account.
They would pass any CEST IR35 test.
What has cause this awful Brexit IR35 Mess
However, because of the terror campaign by the Conservative Government and their attack dogs, HMRC, their client companies are now too afraid to hire them on a freelance basis as before.
Previously, those companies had what they say as the optimum way of working with some permanent road haulage workers and some freelance. They have now been forced to change their optimal business model for one which is sup-optimal.
Can you imagine what a Brexit IR35 mess will ensue from all of this? Road hauliers will be at the forefront of the Brexit implementation. They will be fighting to keep Britain running during the Brexit handover. They will provide the artery for Britain’s trade with Europe.
Why is the Brexit IR35 Mess causing contract road hauliers to leave the profession
Yet Government action on IR35 will see many of the current freelance road haulier drivers leaving the profession. So, they won’t be available when the time comes.
That’s another fine mess you got us into Boris.
With so many contractors, in lots of different professions, planning to quit their client companies on April 6th, the UK could be in a terrible mess by the time we get to the Brexit date of January 1st 2021.
Any bets that they blame it all on the coronavirus rather than their stupid policy on IR35?
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