Has covid changed your working practices? PwC calls firms to review IR35 status decisions
Interesting turn of events as the evidence for MoO starts to stack up. From PwC – “As contractors have seen a “significant reduction in work offered,”, causing “higher reductions in working than employees…does this imply that there never was MOO?”
On Mutuality, firms which specialise in the April 2021 off-payroll rules (or which work under them already) told ContractorUK that PwC appears to have a very valid point.
“We agree the Mutuality of Obligations case is stronger thanks to Covid-19 if the contractor was stood down at short notice,” says advisory ReLegal Consulting. “This is good evidence”.
Coronavirus isn’t a silver bullet however. With more workers having greater flexibility (including WFH and a lack of Christmas parties) a review is worthwhile, along with a refreshed understanding of the rules and a focus on appropriate evidence gathering.
Check out the excellent article here from Simon Moore
We’re a pretty resilient lot, but even we can only take so much
Today is World Mental Health Day.
This workforce has endured the Loan Charge, the on-off then on again of IR35reform, plus the pandemic.
In this article from Joanne Harris, technical commercial manager at SJD Accountancy, she writes;” Arguably just as much as other parts of the economy, the financial implications of the outbreak of COVID-19 are present within the contracting sector, with some contracts being cancelled outright, or postponed. So Samaritans would like to remind people and contractors — please make a point of checking in and supporting anyone who might be struggling as a result of the coronavirus pandemic.”
Here’s the number – 116 123
Here’s the website – https://www.samaritans.org
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Off-Payroll amendments could pose problems for payroll companies
Good article from ContractorCalculator.co.uk sharing that “final changes to the Off-Payroll legislation could pose a significant problem for umbrella companies and other payroll intermediaries, research by IR35 Shield reveals.
Introduced to Chapter 10 of the Income Tax (Earnings and Pensions) Act 2003 via the Finance Act 2020, which reached Royal assent on 22 July 2020, the amendment broadens the legislation’s definition of an ‘intermediary’, the scope of which umbrella companies now appear to fall into.”
A short video on the use of SoW’s in the public sector
From Laura Bonnett on LinkedIn…
IR35 – have we been here before?
Has the public sector given us hope?
For me the answer to both is… Yes
What do you think?
Mainstream press now picking up on Eamonn Holmes appealing against his £250k IR35 tax bill
LinkedIn post from Megan McDonald sharing the news that “Mainstream press are now picking up on the fact that Eamonn Holmes is to appeal against his £250k IR35 tax bill as it is now showing on the Court listings, however, his case seemed one of the strongest “outside” of the many presenter cases ongoing at the time, and so whilst HMRC’s win was a surprise, his decision to appeal is not and we have known for some time that this would happen.”
As she says though “Those currently looking at re-starting their off-payroll reform plans shouldn’t be waiting for the outcome of these though, as only 181 days to go until the legislation goes live and we likely won’t hear the outcome of Eamonn’s till 2022!”
Barclays is cutting PAYE contractors working on regulatory projects
From efinancialcareers – “As banks resume cost-cutting after the pandemic-induced pause, Barclays has become the latest bank to inform some staff that it won’t be needing them.
Insiders at the bank in London say the bank is cutting “most” of the contractors working on its regulatory projects at the end of the fourth quarter.”