Brexit, IR35 & Your Business in 2020

2020. New year, new decade, and new opportunities for you and your business. And, according to our Founder and Executive Chairman, Damian Broughton MBE, it looks set to be “a year of change and growth for us all.”

“2020 – For many, an indication of perfect vision. For the baby boomers, it was a year far, far in the future. And yet, here we are,” he said.

“For the team here at Danbro, we will be celebrating our 20th year of trading. The major events that will affect our market this year are the changes relating to IR35 in the private sector and the implementation of a key information document to be presented at the start of each assignment.”

“Change always brings opportunities. And, here at Danbro, we are ideally placed and prepared to take hold of them whenever they appear. I expect 2020 to be a great year of change and growth for us all.”

So, with that in mind, what are the main talking points in our industry as we enter the 2020s?

Brexit

Of course, the biggest thing affecting businesses in 2020 is likely to be the UK’s withdrawal from the European Union. January 31st is the latest date set for departure. And after years of indecision and uncertainty, it’s important for UK business that a definitive step gets taken one way or another.

While markets fluctuate and confusion continues, it remains to be seen what it will mean for businesses once Brexit finally happens. What’s been slightly overlooked in the national debate, though, is the role of the contractor workforce in an ‘independent’ United Kingdom. Well, at Danbro, it’s our firm belief that self-employed workers could play a crucial role in supporting British businesses – and the economy – as the country adapts to the post-Brexit landscape.

As Damian puts it, ‘there are always opportunities’.

“It’s refreshing to consider the opportunities that’re available to those in self-employment,” he said. “We anticipate that the UK’s PLC market will turn to freelancers, contractors and temporary workers to fill the gap should opportunities change for our European colleagues after Brexit.”

“Following the date when the UK leaves Europe there will be a further period of at least two years to agree the finer details of the exit,” Damian continued. “What’s more, it might take another few years for the country’s new trade deals to settle in.”

“Throughout these bedding in periods, we foresee many Companies being unwilling to take on new employees. This will result in a need for flexible workers to fill the gap.”

We’ll be keeping a close eye on the impact that Brexit has on our market. So, you can rely on Danbro to deliver the best advice, information & contractor solutions. Read more, here.

Off-payroll working in the private sector 

One of the year’s other significant developments – affecting both contractors and businesses alike – is the implementation of the IR35 rule changes. The new legislation comes into force on April 6th. So, our focus up to that date and beyond will be to help our clients prepare and adapt to the forthcoming changes.

IR35 has been another contentious issue for the Government. Particularly since the problematic public sector implementation three years ago. Only last week, the Government launched a review into the process of the transition . They’re keen to mitigate the impact for those affected.

Assuming nothing dramatic happens over the next few months, fate-tempting as that may be, it’s vital that preparations continue at pace. As Danbro’s Group Operations Director, Katie Burrows, warns, “the changes are going ahead whether we like it or not.”

“The key thing for PSCs, their clients, and recruitment agencies,” she says, “is making the right decision in a timely manner. Too much delay in notifying PSCs of their contract status leaves everyone chasing their tails.”

“The options for PSCs are clear once they know their status. Either operate through their limited company under a deemed salary or go onto the payroll of their agency or end client. Or, they can operate through an umbrella company.”

So, to make things easier, Danbro are offering our leading umbrella company solution for free*! This exclusive offer is available to all Danbro Accountancy clients who pay their fees in full by direct debit. You can find out more, here.

Likewise, if you want more information on April’s rule changes and what they could mean for you, check out our IR35 hub now. Our exclusive hub includes tips and videos on our services and solutions. Furthermore, it tells you how to prepare, as well as how Danbro can help with IR35 status assessments.

Danbro turns 20

In Summer 2020, we’ll be marking the start of our third decade in business. Damian founded Danbro all the way back in 1999 with his wife, Helen Broughton MBE DL. In the 20 (ish) years since, we’ve helped over 100,000 contractors and employ hundreds of people, both from our base in London and our home at Jubilee House, Lancashire.

The thing we’re most proud of though, is the culture that Danbro has become synonymous with. What we do is about more than just profit margins and lead generation. Our values of trust, respect, integrity, dynamism, and the importance of family, are underpinned by every one of our fabulous employees, new and old. The Danbro Foundation, for instance, is a prime example of how we use our profits to effect positive change on the community.

We’re also committed to running our business as efficiently as possible. We are conscious of our contribution to the environment and our local community. It’s one of the reasons behind our paperless service. Not to mention the rainwater harvesting at our home on Lytham Green.

To find out more about the history behind the Danbro you know today – and the future we strive for – check out our ‘In Conversation’ series, with Helen and Damian, as they discuss the secrets of the company’s success, and the ambitious plans we have for the next 20 years!

In the meantime, we’re ready and eager for a challenging spring, and look forward to the celebrations that summer will bring. Keep an eye on our social channels throughout the year as we share the festivities with you, our Danbro Family.

Happy New Year.

Some key dates for your diary

January 31st: UK due to leave the European Union.

January 31st: Deadline for paying tax bill for the year ending April 5th 2019.

March 11th: Budget Announcement by the Chancellor.

April 5th: 2019/20 tax year ends.

April 6th: Changes to Off Payroll Working in the Private Sector come into force.

October 31st: Paper Self-Assessment tax return submission deadline for 2019/20.

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