A new Government can often mean a raft of new legislation. But those hoping for delays or amendments to the private sector’s incoming IR35 changes might be slightly disappointed. That is despite a governmental review announced earlier this week.
‘No Postponement for Implementation’
While the Treasury has launched plans for a consultation on the reforms, there will be no postponement to the implementation date of April 6th.
According to the Treasury, “the review will determine if any further steps can be taken to ensure the smooth and successful implementation of the reforms, which are due to come into force in April 2020.”
The review aims to gather evidence and information from the businesses and individuals affected, to ensure a straightforward transition to the new regulations. It will also evaluate the necessity of extra support to ensure that self-employed people outside of the legislation are not impacted. The Government has said it wants to use the review to ‘address concerns’. It has also been announced that a separate review will be launched to look into how the Government can better support the self-employed. You can read more from the Treasury, here.
‘Still time to prepare’
This consultation is considered by some in the industry to be something of a climb down from the Chancellor’s pre-election promise of a larger-scale IR35 review. So, providing nothing dramatic happens over the coming months, it’s crucial that businesses, agencies and contractors alike continue to prepare for the incoming wave of legislative change, as Danbro’s Group Operations Director, Katie Burrows, explains:
“The changes to IR35 are going ahead whether we like it or not.”
“The positive to this news coming before the budget is that we still have time to prepare! The key thing for PSCs, their clients, and recruitment agencies, is making the right decision in a timely manner. Too much delay in notifying PSCs of their contract status leaves everyone chasing their tails in March and April.”
“The options for PSCs are clear once they know their status. Either operate through their limited company under a deemed salary; operate through an umbrella company; or go onto the payroll of their agency or end client.”
“PSCs need clear guidance to be able to decide the best option for them. So, we’d advocate for end clients making decisions well before the deadline, to give PSCs the best chance of finding the right route for them. After all, it’s PSCs that will be impacted most by this legislation, so it only seems fair to give them time to navigate it.”
For more information on IR35, including tips on how to prepare and ways in which Danbro can help with IR35 status assessments and umbrella and accountancy services, check out our exclusive hub now.