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Winter Economy Plan 2020: Relieved or Livid?

In this article in Contractor UK, Simon Moore shares the thoughts of key IR35advisers and experts on the winter economy plan 2020.

From Qdos saying “…Rishi Sunak left contractors “stranded”..”, a calculation of the state handout for PSCs from Orange Genie, SJD warning about the tax  implications for those taking out directors loans to a thought from Rebecca Seeley Harris that some PSCs might actually be relieved that the IR35 screw was not tightened.

With these inputs and more, it really does cover a full range of responses to consider. 

IR35 update: end user liability where its supply chain fails to pay

Osborne Clarke shared that “New HMRC guidance clarifies the supply chain compliance risks and obligations that end users need to take into account as they prepare for changes to the IR35 regime that come into force in April 2021.”

It covers questions such as;

  • Will the IR35 changes ever actually happen?
  • When will end users be liable?
  • What will HMRC do when the Fee Payer is not able to pay?
  • Is there any defence for the MSP or end user?
  • What checks should end users and MSPs carry out on their supply chain?

Worth checking it out if you’re not sure of the answers and should be 🙂

Before you read on …

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What is the joint employment model for engaging contractors?

From Contractor Calculator this week, they explain how this model might sound like a traditional umbrella company arrangement, but it’s not. 

“Joint employment is an engagement model that can yield significant commercial advantages for certain organisations but shouldn’t be considered a quick fix for agencies and hiring firms tasked with processing payments for ‘inside IR35’ contractors under the Off-Payroll legislation”

Worth checking out and understanding an option you may not have been aware of?

Five Tragic Mistakes Contractors are Making When Closing Down a Limited Company

Thank you Theresa L Campbell for this insightful article on LinkedIn.

Closing down a limited company is not a process that should be rushed and specialist advice is incredibly useful prior to kicking things off, or even thinking about kicking things off. 

Do you get it?

Ahead of their IR35 webinar on Wednesday 14 October, Reed would love to hear your thoughts on how well you think your company understands the changes. 

To find out how you can prepare your business, register your attendance for their webinar on 14th October here.

WEBINAR – Insights from the Private & Banking Sector and Preparation for 2021

If you have an hour to spare it’s worth checking out Dave Chaplin catching up with James Winter from HiverPath to discuss his experiences of Off-Payroll in the private sector. 

Here’s the link

You’ll hear their thoughts on these questions…
– Are there any chances of a delay?
– What really happened in the banking sector?
– New rights for “inside IR35” contractors
– Rights under Agency Workers Directive
– Rights under the Conduct Regulations
– Market insights on CEST
– Predictions / advice as we approach April 2021