Restarting deferred projects – has COVID-19 changed the view on tax status ahead of the 2020/21 changes?
Useful article here from PwC looking at the need for organisations to take a step back before they restart their deferred IR35 projects and look again at whether contractors are inside or outside of IR35.
“Where roles might have originally been assumed to be within IR35 (if that is what the draft assessment concluded when undertaken back in 2020) it’s important to take a step back and reconsider the questions again and how responses may have changed. Of course, there is a risk that assessments that were previously concluded as inside IR35 may now be found to be “undetermined”. This highlights the importance for all businesses of having a robust process for reaching a conclusion. In other words, a consistent approach and methodology with an audit trail, along with a well thought through process to manage inevitable disputes in line with the statutory timeline.”
IR35 myths, maybes and realities
An article by Matt Fryer of Brookson Grouptackles ten of the more nuanced IR35 myths, maybes and realities in this ContractorUK article.
Most limited company contractors now know that the responsibility for assessing their IR35 status will pass from them, to the end-user who engages them in a little over six months’ time — from April 6th 2021. However, there are still a signifiant amount of incorrect assumptions being made. Worth checking it out to see if you’ve assumed any of those included.
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Contractors, why use a recruitment agency that accepts incorrect IR35 status decisions?
It’s worth checking the IR35 knowledge of the agency you’re working with. Here’s an example of one that seemingly likes to do things right.
From author Matt Collingwood, managing director of IT recruitment and consultancy services company VIQU;
“I’d encourage all contractors to partner only with those recruitment agencies which actively show they understand the complexities of IR35 and are happy to push back on clients who make the wrong determinations. Other avenues for contractors to consider include looking for contracts with ‘small companies’ as the IR35 status determination will then sit with the contractor…”
Tax after coronavirus
“The general consensus from the panel was that it is a subject that needs to be addressed but, that it was too complicated to be a simple tax rate rise. One panel member commenting that “…to adjust them would be massively painful for self-employed people.”…”
Is my SDS still valid?
Useful article here looking at the delays and key FAQ’s.
“Status Determination Statements (SDS) were introduced alongside the highly anticipated reforms to off payroll working, which were due to come into effect on April 6th 2020. However, they were then deferred for 12 months due to the coronavirus pandemic.
Unfortunately, the delay was announced at the 11th hour after many end-hirers had already completed the status assessments and issued the SDS in readiness for the original deadline, writes Joanne Harris, technical commercial manager at Parasol Group.“
Should you accept or decline that freelance brief?
“Choosing whether or not to accept a freelance brief isn’t always an easy, black-and-white decision. So I wrote this guide to show how I choose projects in my business of Animation and Motion Graphics Design.”