Well, it’s been a week! We could share lots of stories of things that have happened, but this is just for IR35. Nothing else… nada, nichts, niente. So, read on and remember that if you see something interesting (or have written something), do send it through so it can be shared with the community. If there are others you think that would benefit send it on, or share the link – www.IR35Weekly.uk.
New Rules Delayed
Tuesday 17 March, it was confirmed that changes to the off-payroll working regime will not take effect until April 2021 due to the coronavirus pandemic. If ever there was a time to watch debates and sub-committees it’s now.
For those who have already made changes to reflect the new rules, HMRC has said that Status Determination Statements will have no standing in law and will not be used as evidence in any enquiry dispute during the coming year.
A great post by Rebecca Seeley Harris about Statutory Sick Pay and PSC workers, with a good debate in the comments.
Here’s a snippet; “…then why can’t an inside IR35 PSC claim SSP from the public sector client because it is they who are the deemed employer? The problem appears to be that the government just can’t figure out how to draft it.”
The decision to postpone the Off-Payroll Working Rules; known as IR35, due to take effect from 6 April 2020 to 2021, took both industry and contractors by surprise. A post by David Hale, MD of Jon Lee, urging contractors to approach what may seem like a positive step, with caution.
Interesting post from Alexander Wilson on Linkedin and the subsequent debate in the comments is great to read. Here’s a snippet…
“..What happens if you received a SDS stating your contract was ‘inside IR35’ in the light of the Chief Secretary to the Treasury’s announcement on Tuesday? Well, the SDS was in respect of legislation that was not in force. It has no statutory footing whatsoever until April 2021….”
The debate continues… it’s a great read with people who really know their stuff.
ContractorCalculator.co.uk reported that the self-employed face effectively double taxation under Off-Payroll Tax consequently deducting employment costs from the contract rate. This practice is contrary to the legislation, which requires that these costs be borne by the ‘fee-payer’.
IT Contractor reported that Treasury Minister, Jesse Norman, threw down an almighty IR35 Challenge to contractors in answer to a question in Parliament. He backed the IR35 reforms and said that if contractors didn’t like taxation without benefits they could try to get it overturned at an employment tribunal.
David Stone, Chief Exec of MRL Consulting Group shared in Information Age that with IR35 implementation being delayed, there are things that IT contractors can do to help with business continuity in the midst of the COVID-19 pandemic.
Hiscox shared that the news that the government has postponed IR35 tax reforms in light of the coronavirus outbreak should not take the spotlight away from the need for contractors and businesses to prepare effectively for the changes.
OK, this was way more than a week ago, but for a very straight forward, clear explanation of IR35 this is the place to go.
We’re big fans of clear and straight forward. If you have suggestions for what should be included next week you can post them on the site or send an email.