Last week Oakleaf Partnership hosted the first of a series of IR35 breakfast seminars partnering with Sean Mackenzie from Parasol.
In the wake of the latest HMRC consultation, we discussed the implications of the legislation and how this will affect businesses.
Although taxation is often quite a dry topic this proved to be an information-packed session with lots of useful takeaways on how to best prepare for the change ahead of April 2020.
We discussed the importance of identifying behaviors that will be classed as falling in or out of scope, how to identify these and what needs to be done contractually to support these findings.
It was clear that educating hiring managers on how to engage contractors and allow them to act as ‘true’ Limited Company contractors is paramount to ensuring that we don’t see a mass movement towards FTC and PAYE contracts, thus avoiding the chaos we saw in 2017 across the public sector.
We also discussed the eventuality of day rates increasing or decreasing which ultimately will come down to how sort after the role and skill set is and the availability of talent in the market. The general thinking around this is that both the end user and the contractor will have to take into consideration some change in the rate to accommodate the new tax allocation.
While there is no doubt the interim market is going see an initial shake-up while we all come to terms with this change, if we have a clear understanding of the legislation and are communicating effectively Limited Company contractors will still have a place in the interim market and we should see the dust start to settle relatively quickly.
We will be hosting another event after summer so if you are interested please do get in touch 0n my contact information below.
katebenson@oakleafpartnership.com