RBS IR35 Contractor Email from Recruitment Agency – PAYE or Umbrella

RBS IR35 Contractor Email
RBS IR35 Contractor Email

RBS IR35 Contractor Email

We have seen the RBS IR35 contractor email from a recruitment company to its contractors. It explains the contractors’ options. The main point of the email is that RBS will no longer take on, or renew, any contractors who want to continue to operate via their personal service company. The use of limited companies at RBS is over.

Contractor Questions on the RBS IR35 Contractor Email

  • What is the Agency Email About?
  • What Options are RBS giving contractors?
  • When do RBS contractors have to make up their minds by?
  • What are other banks doing about IR35 and their contractors?
  • How big a blow is the RBS IR35 contractor Email from the agency?

What Is The Agency Email About

The Email states that it is an update on the changes to the Off Payroll legislation and what RBS are doing about it. It applies both to new contractors and those who are extending their contracts. It is being sent to all the agency’s contractors at RBS. The bank has always been a major user of temporary workers. It will continue to be so. However, they won’t be able to use their personal service companies.

The agency will be holding seminars on what it all means in London, Edinburgh and Manchester. The email explains why RBS is having to change its policy due to the Government IR35 legislation.

It states that the legislation particularly affects contractors who would pay PAYE if their contract income is not being diverted through an intermediary, i.e. their personal service company.

What Options Are RBS Giving Contractors

Th email says that RBS will consider whether to offer some contractors permanent employment.

The email states “If you are offered a contract extension which takes you beyond 28 February 2020, we will speak to you about PAYE and Umbrella engagement options.  In the first instance should you wish to continue to work through your limited company, you will only be extended until 28 February with your limited company engagement, and upon 28 February, your contract will end. 

“After 28 February 2020, should the business wish to extend you, you will need to confirm which PAYE or Umbrella engagement option you will use. You should start to consider now which of the engagement models available to you ( PSL or PAYE) you will use to continue your assignment with RBS should you be extended in the future. “

When Do RBS Contractors Have to Make Up Their Minds By

It seems that all contractors deciding to stay on must select their option by February 28th. If contractors choose not to take up either of the options and want to continue to operate via their PSC they should work out an appropriate leaving date with he agency.

The RBS IR35 Contractor email is a huge blow to all contractors – especially banking sector contractors.

What Are other Banks Doing About IR35 And Their Contractors

Banks who will no longer take contractors using personal service companies include:-

  1. Barclays Bank
  2. HSBC
  3. Lloyds Bank
  4. Tesco Bank
  5. Morgan Stanley

Not one bank has said, so far, that they will continue to hire limited company contractors. That’s odd. Do they know something we don’t? Remember Chancellor Sajid was Managing Director of Deutsche Bank and knows this sector well.

Even HMRC hires some contractors who use personal service companies? So why will the big banks not do this?

It’s a mystery!

There’s one piece of this jigsaw puzzle that contractors are not seeing.

How Big a Blow is the RBS IR35 Contractor Email From the Agency

This RBS IR35 contractor email is yet another blow to the contracting profession. There have been many of those over the past 20 years.

It just shows you that even when the Chancellor and Prime Minister announce an electioneering budget with mass giveaways, they still announce hey are going to grab more of contractors’ cash.

I think that says a lot about the effectiveness of the lobbying by contractors.

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