CONTRACTORS, ‘NOW IS THE TIME TO REGISTER’ WITH AN UMBRELLA COMPANY

Contractors; as it’s Cheltenham Festival week – for the time being, at least – let’s consider IR35 in racing terms.

The twists and turns of the IR35 jump race are almost over. For many, the final fence (Wednesday’s Budget) has now been hurdled and the legislation is onto the home straight. And, whether you wanted the race to go ahead in the first place – and many didn’t – the finish line is now in sight.



April implementation to go ahead as planned

Years of discussion, debate, uncertainty and legal wrangling was all but concluded on Wednesday in one short, sharp statement, buried in a 121 page document:

“At Budget 2018 the Government announced that it would reform the off-payroll working rules (IR35) in the private and third sectors from April 2020. The Government has recently concluded a review of the reform, and is making a number of changes to support its smooth and successful implementation.”

“The Government believes it is right to address the fundamental unfairness of the non-compliance with the existing rules. The reforms will be legislated in Finance Bill 2020 and implemented on April 6th 2020, as previously announced.”

At Danbro, we’ve been clear for some time that these Private Sector, IR35 rule changes were coming. Perhaps this is the type of ‘official confirmation’ that some contractors have been waiting for?

Either way, with the new tax year fast approaching, you need to make sure you’re prepared. Which is why Danbro’s Executive Chairman, Damian Broughton MBE, is recommending that “now is the time” to register as an umbrella contractor.



Prepare for IR35, ‘now’

“So, the Chancellor went ahead with the IR35 changes in the Private Sector,” said Damian. “Many of our clients had already received an assessment from their end clients. But there is also a large number who had been waiting for the Budget to decide which umbrella company to register with.”

Now is the time to register in preparation for April 2020.”

Away from the off-payroll changes, Damian praised the Chancellor’s response to the international health crisis, Covid-19. He also welcomed the cash injection for transport and infrastructure.

“There was some welcomed news with Entrepreneurs’ Relief not getting abolished,” he continued. “Furthermore, it was heartening to see the Chancellor applying a ‘business vaccination’ against the Covid-19 pandemic. This included the announcement of extended SSP, the scaling up of ‘time to pay’, and business rates relief for some entities.”

“The announcement of £600bn on infrastructure and transport projects was unprecedented but also most welcome. It will result in many opportunities for years to come.”



Find out more

The IR35 rule changes are hot on the horizon. For more information on the legislation, including what’s changing and how you can prepare, check out our exclusive hub today.

Or, to find out more about the Budget speech and how it could impact you, click here.

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