Sky and Expiris
Sky and Expiris have reversed their IR35 policy and will allow their contractors to use personal services companies for the next year. Expiris supply Sky with many of their contractors. Indeed it is all their contractors on some projects.
So, this is a major bonus for contractors in their fight against the Chapter 10 IR35 changes.
Questions on Sky and Expiris IR35 Policy
- What are Sky and Expiris telling their contractors about renewals?
- How simple was it for Sky and Expiris to reverse policy?
- What did the Government Claim as to why companies blanket banned contractors using PSCs?
- Will it be easier for Sky and Expiris to hire contractors now?
What are Sky and Expiris telling their contractors about renewals
Sky and Expiris are informing their contractors that they can forget their previous IR35 position of forcing them into PAYE because of Government and HMRC financial threats.
Their contractors are receiving similar emails which say “We are contacting you as you have an assignment renewal shortly”.
The email then goes on to say that HMRC’s off payroll rules are being suspended till April 2021.
Therefore “as a result of this being deferred, we no longer need to transition you to a new contract, or change the way you are currently engaged.”
They then tell the contractors that they would issue an extension to their existing agreements.
How simple was it for Sky and Expiris to reverse policy
Well that was pretty simple wasn’t it?
Lots of contractors are saying it is too late. Companies have gone far too far down the line. Yet look how easy it was for Sky and Expiris just to revert out of that policy forced on them by the Government. All it took was a short email.
It shows that they never really wanted to go down that route anyway.
What did the Government Claim as to why companies blanket banned contractors using PSCs
The Government claimed that it was due to companies reviewing their business models that they were coming to the decision that a business model using PSC contractors was no longer the best business model.
That was total and utter nonsense.
It was only because of Government and IR35 threats of crippling fines if companies got it wrong that so many companies were going to force companies to go PAYE.
This response from Sky and Expiris shows that. They are going back to the business model that suits them best and which has aid off for them in the past.
Will it be easier for Sky and Expiris to hire contractors now
It will also make it a lot easier for them to hire contractors for the next year when big banks and some other companies are still going down the permitractor line.
I think we will hear, over the next few days, of many other companies who will revert to their best practice business model where they hire PSC contractors.
The more companies like Sky and Expiris the merrier!
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