Archive ir35 - ContractingWISE

Banks try to swerve IR35 with “no PSC” policy

Banks try to swerve IR35 with “no PSC” policy

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Lloyds are the latest banking group to adopt a “no PSC” policy, meaning the contractors they engage won’t be able to work through a personal service company or limited company. On Tuesday, the company informed thousands of its contingent staff that they would lose their contracts if they didn’t join a PAYE umbrella company, which would see their pay reduced by around 30%.…

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IR35 clampdown is nothing but scaremongering

‘IR35 clampdown’ is nothing but ‘scaremongering’

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UK pharma giant GlaxoSmithKline has found itself targeted by authorities after HMRC sent nearly 1,500 of its limited company contractors identical letters. The letters stated that in HMRC’s view, their contracts were caught by IR35. Contractors who don’t agree with this assessment were informed they must either write to HMRC, supplying them with supporting evidence of why they are not caught under the rules, or else work out their appropriate PAYE tax and NICs for the 2018/19 tax year.…

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HMRC publish Off-Payroll Legislation

HMRC publish Off-payroll Draft Legislation

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Following the publication of their consultation, the government have released the Off-payroll Draft Legislation as part of the Finance Bill 2019-2020.  The legislation will come into effect in both the public and private sectors from April 2020. Although the consultation sought to address concerns in several areas, the general consensus is that the resulting legislation does little to address these key issues, which are as follows:

  • The definition of a small business for the purpose of exemption
  • Non-compliance in the labour supply chain
  • Clients making non-compliant blanket determinations/ NI deductions
  • Giving workers and fee-payers an independent means of challenging status determinations made by client organisations.
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