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Private sector IR35 reforms: all you need to know.

11th Jun 2018
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It’s been over a year now since IR35 reforms came into effect within the public sector, and to say it hasn't gone well is an understatement. As consultation for private sector IR35 reforms has recently begun, there's a growing fear similar issues may also soon plague the private sector, which could spell bad news for trade and construction workers across the UK.

So we’ve put together a snapshot of where the reforms are at to get you up to speed with the latest developments.

Controversial IR35 reform could hit private sector earlier than you’re expecting.

Before we get into it, this article offers a great overview of what the IR35 reforms entail, plus provides you with an historical timeline, and what it might mean for the public sector. 

IR35 Highly Destructive To Public And Private Sectors.

A recent survey completed by Harvey Nash found that over 90% of contractors were either stressed, worried or angry about these reforms. For the public sector, it’s likely to be the same, which gives you an opportunity to provide reassuring advice with your trade and construction clients. 

How HMRC’s IR35 reforms are destroying locum nurses’ livelihoods and patient care.

All sorts of people were affected by the public reforms. Due to the blanket assumption of all nurses falling under the reforms saw some nurses for taking a third less income. 

IR35 tax reform causes mass exodus of public sector contractors.

In the month after the public reforms were implemented, there were some astonishing statistics covered in this article. It’s not too difficult to imagine the impact on the private sector too.

  • 27% of public sector contractors left the public sector.
  • 52% of those exiting contractors are yet to be replaced.
  • 79% claim IT projects they have been working on suffered delays.
  • 25% of NHS departments have lost at least 50% of their flexible workforce.

The Government must change its attitude for the sake of independent working.

With freelance and contractors estimated at earning a staggering £119b (in 2016) and being a workforce numbering approximately 2m in size, the Government needs to rethink its attitude towards this sector. 

HMRC is incapable of implementing and policing the off-payroll (IR35) reforms.

There are serious doubts over the HMRC’s ability to pull off these IR35 reforms. Contractor Calculator were quick to point out the futility of HMRC’s case against Jensal Software. 

HMRC isn't listening on IR35; 'evidence shows' it’s not going to.

Hello… is anyone at HMRC even there? Contractor UK believes HMRC’s decision making is being skewed by incomplete research, and has some evidence to back it up.

IT contractors express concerns over ‘inevitable’ private sector roll-out.

Similar to the trades industry, the IT industry has a significant proportion of contractors. There is a general concern for HMRC’s IR35 tool, which will need to be significantly overhauled to ensure well-informed decisions can be made by all. 

Expert tips for private sector IR35 preparation.

Everyone likes tips, and here are some helpful tips to help your clients prepare for the impending IR35 changes. 

The IR35 scenario an evasion rule behoves you to avoid.

Trying to outsource an IR35 decision? Not so fast. You’ll be right in the CFA’s crosshairs if you do. The onus is always on the hiring company. Get the full story in the link, plus a helpful scenario to spell it out. 

Your chance to make a difference.
The IR35 reforms in the private sector are inevitable. While the history of the public IR35 reforms didn’t go well, there is a chance to avoid the same mistakes through the consultation period. It’s vital that everyone weighs in to give the best chance of producing an IR35 reform that benefits everyone. Find out how to have your say here.

Want to grow your offerings for trade and construction clients? Find out about the Tradify Partner Program today.
 

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